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Expect good earnings from Wall Street
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I expect good quarterly earnings from Wall Street.I think we will see 12,700 level and furthermore I am pretty optimistic on results. However on Tuesday the stock market can lose some value because of the economic indicators specially inflation. If the inflation news isn't particularly significant, it'll be more of an earnings-driven environment.
Next week could be make-or-break time for Wall Street's push to recover from the market's slide in late February, with earnings due from bellwethers such as Citigroup Inc. and the release of the Consumer Price Index.
Outlooks accompanying next week's results will be crucial because investors are eager to determine the extent of the fallout from the housing slowdown and the wave of delinquencies and foreclosures in the subprime mortgage market.
On Tuesday, the Street will get three economic reports for March that will merit close scrutiny for clues on inflation and the economy's health: the U.S. Consumer Price Index, housing starts and industrial production. March retail sales are due on Monday.
Chip maker Intel Corp. beverage company Coca-Cola Co. (, both components of the Dow Jones industrial average are among the marquee names on next week's earnings calendar.
This week, the world's largest aluminum company, Alcoa Inc), and diversified conglomerate General Electric Co.) kicked off the earnings season on a higher note, with both companies reporting a rise in quarterly profits.
The benchmark Standard & Poor's 500 index consolidated its recovery back to levels it held just before the February 27 sell-off that rattled global equity markets.
For the week, all three major U.S. stock indexes rose: The blue-chip Dow Jones industrial average added 0.41 percent, the broad S&P 500 gained 0.63 percent and the tech-driven Nasdaq Composite Index rose 0.83 percent.
Investors tend to look ahead, so they will pay special attention to next week's statements on profit outlooks. These comments will give a glimpse of how corporate America sees the economy faring as the housing market falters and subprime mortgage defaults rise.
Investors tend to look ahead, so they will pay special attention to next week's statements on profit outlooks. These comments will give a glimpse of how corporate America sees the economy faring as the housing market falters and subprime mortgage defaults rise.
If upbeat outlooks and stronger-than-expected quarterly earnings dominate next week's headlines, then analysts expect stocks to push ahead with their recovery. The U.S. stock market has broken away from its mid-March lows that followed the February 27 sell-off, which was triggered by a drop of almost 9 percent in China's main share index.
A flurry of deal news also could lend support.Expectations are pretty muted right now for first-quarter earnings, so I'm pretty confident companies will be able to beat those expectations.Earnings will generally be a positive since expectations are relatively low.
Until recently, investors had been betting that the Fed would want to forestall a further slowdown in growth by cutting interest rates sometime this year, perhaps as soon as this summer. However, minutes from the Fed's most recent policy meeting showed this past week that the central bank's top officials were more worried about inflationary pressures just as I predicted months ago.As a result, Tuesday's CPI report is most likely to be the determining factor of whether Wall Street sustains its uptrend or reverses course next week, according to analysts.
The Labor Department's overall Consumer Price Index is forecast to gain 0.6 percent in March, after rising 0.4 percent in February, according to economists polled by Reuters.
The closely watched core CPI, which excludes volatile food and energy prices, was expected to rise 0.2 percent in March, matching February's gain.
On the housing front, more signs of a slowdown are expected when Tuesday's report is released. Housing starts for March are forecast to fall to a seasonally adjusted annualized rate of 1.495 million units from a rate of 1.525 million in February, according to the Reuters poll. Building permits are likely to slip to an annual rate of 1.510 million in March from 1.532 million in February.
Industrial production is forecast up 0.1 percent in March, while capacity utilization is pegged at 81.9 percent.The Federal Reserve's report is set for Tuesday. In February, industrial production jumped 1.0 percent and the capacity utilization rate was 82 percent.
March retail sales, due on Monday, are expected up 0.6 percent overall and excluding autos, up 0.9 percent. |
| Tarih
: 16.04.2007 |
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© 2006 Mert TOKER All Rights Reserved. |
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