As we wrote and expected in the beginning of last week, market participants largely ignored geopolitical events and focused on earnings instead. However, the downing of Malaysian Airlines flight MH 17 by (apparently) Russian separatist in Ukraine may shift this dynamic over the coming days. More significantly from a market perspective, corporate earnings reports and earnings calls have been robust and positive so far, pushing stocks to new all-time highs.
Earnings heat up for BJ’s, Mr. Softy, and HOG… while it will be a busy reporting week, there is also plenty of economic data to be digested. So far, markets have ignored geopolitical events, which I expect to continue over the coming week or two. However, I do expect market participants to tune into economic news more than they have in previous weeks. The “Be long or be wrong” moniker by market bulls may be running on thin air in the coming weeks. While a significant correction is unlikely, the air is getting thinner and prudent portfolio management rules indicate caution.
This Week’s Market Moving Events:
Monday: German PPI before the open, followed by the Chicago Fed National Activity Index. Halliburton (HAL) and Netflix (NTFX) report.
Tuesday: Japan all Industrial Index and U.S. Consumer Prices before the open, U.S. Redbook, Home prices, Existing Home Sales, and the Richmond Fed Manufacturing Index. Altria,, Apple (APPL), The Coca Cola Co (KO), Harley Davidson (HOG), Kimberly Clark (KMB), McDonalds (MCD), Microsoft (MSFT), Prologis (PLD), United Tech (UTX) report
Wednesday: Mortgage Applications, Eurozone Consumer Confidence, U.S. Petroleum Reserves, Chines Flash PMI Manufacturing and Japanese PMI (after 9:30 PM). ATT (T), Boeing (BA), Clear Channel home of our weekly radio show (CCO), Crown Castle International (CCI), Down Corning (DOW), Facebook (FB), Norfolk Southern (NFS) PepsiCo (PEP), and Tupperware (TUT) all
Thursday: Eurozone and German PMI, U.S. Jobless Claims and Consumer Comfort before the open, plus New Home Sales, Kansas City Fed Manufacturing Index, and Japanese CPI date are reported. 3M (MMM), Bristol Meyers Squibb (BMY) Caterpillar (CAT), Elli Lilly (ELY), Ford (F), General Motors (GM), Leggett & Platt (LEG), Raytheon (RTN) and Starbucks (SBUX) report earnings.
Friday: TGIF (not the restaurant chain)…. U.S, Durable Goods at 8:30 AM and Tyco (TYC) report.
Make sure to tune into Money Matters with Gary Goldberg this Saturday and Sunday on WOR 710 AM Radio to hear our complete economic analysis and ongoing market commentary. Visit www.ggfs.com for details.