Weekly Newsletter March 10th - March 16th

Current Events:  Last week the U.S. markets recorded another very strong week in which new highs and new levels were hit. This week will shed light on the consumer pulse with various retails sales data scheduled for announcement. Such data will provide key insight on whether consumers are content enough with current stock and housing prices to confidently open up their wallets in ways not seen since 2008.

What to Look for This Week

A handful of retailers, including Aeropostale and Dick's Sporting Goods, are the majority of what is left to report earnings this quarter. Though it is a light weak from an earnings perspective, investors will be very interested how the week unfolds as record-breaking market highs are on the line each day.

News Affecting the Markets

Infamous economist Nouriel Roubini, credited for predicting the global financial crisis in 2006, has once again publicly predicted a market correction. According to Roubini, higher taxes and spending cuts will hinder U.S. economic growth this year leading to major market correction in the second half of 2013.

Smart Investing

Short-term vs. Long-term:  In a statement attributed to Warren Buffett, he describes the stock market as a voting machine in the short term and a weighing machine in the long term. So in the immediate term, the machine just makes a whole lot of noise. Most of the time, you should not really pay attention to stock prices. Over the long run, though, the price of a stock does get established. So you want to keep your eye on the stock for a much longer period of time. Great products and terrific sales precede great company reports. But since earnings reports are only done quarterly, most investors wait for the reports and then buy or sell the shares of the company. Smart investors watch what consumers buy, and then jump in during that lag time before the reports are released. Over the long run, one thing is certain: Good companies produce good products. And if those companies are run well and their products are bought and enjoyed by consumers, their stock prices will go up. So keep an eye out for great companies with terrific products and you're going to find a few winners.

Earnings for the Week

Monday: Dick's Sporting Goods Inc (DKS)

Tuesday:  No major announcements.

Wednesday: GUESS? Inc (GES), Men's Wearhouse Inc (MW) {After the Close}

Thursday:  Aeropostale Inc (ARO), Ulta Salon Cosmetics and Fragrance Inc (ULTA) {After the Close}

Friday:  No major announcements.

* Earnings dates and times are subject to change

 Economic Data this Week

 Monday

No announcements scheduled.

Tuesday

Treasury Budget @ 2:00 PM for February (Est. = -$205.0B, Prior = -$237.7B)

Wednesday

MBA Mortgage Index @ 7:00 AM for 03/09 (Est. = n/a, Prior = 14.8%)
Retail Sales @ 8:30 AM for February (Est. = 0.2% to 0.5%, Prior = 0.1%)

Business Inventories @ 10:00 AM for January (Est. = 0.4% to 0.6%, Prior = 0.1%)

Crude Inventories @ 10:30 AM for 03/09 (Est. = n/a, Prior = 3.833M)

Thursday

Initial Claims @ 8:30 AM for 03/09 (Est. = 350K, Prior = 340K)
Continuing Claims @ 8:30 AM for 03/02 (Est. = 3100K to 3103K, Prior = 3094K)
PPI @ 8:30 AM for February (Est. = 0.7% to 0.8%, Prior = 0.2%)
Natural Gas Inventories @ 10:30 AM for 03/09 (Est. = n/a, Prior = -146)

Friday

CPI @ 8:30 AM for February (Est. = 0.5% to 0.6%, Prior = 0.0%)
Empire Manufacturing @ 8:30 AM for March (Est. = 5.0 to 6.5, Prior = 10.0)
Michigan Sentiment @ 9:55 AM for March (Est. = 77.8 to 79.0, Prior = 77.6)