INSIGHTS
OCT
22
WEEK AHEAD...
As is our custom, we will go over the last week’s developments and try and make a little sense of them and then take a look at what’s in store for the coming week.
Again, we were off base with our rosier than should be outlook for earnings. The tech sector took a hit with Microsoft (MSFT), IBM (IBM), Intel (INTC) and Google (GOOG) all missing estimates with General Electric (GE) also falling a tad short. They also lowered guidance going forward so we will have to take another look at how we view the third quarter earnings scenario and maybe lower our expectations for the fourth quarter as well.
The increase in Jobless claims helped propel the market further downward on Friday to cap off a week of disappointment from our end.
We can crow with the best of them when we are right, we also can admit our failures when we are wrong.
Now for the coming week: This will be another week of earnings. Caterpillar (CAT), United Parcel Service (UPS), and Whirlpool (WHR) all set to announce and considering the tone of this earnings season, I will have to say I don’t expect any surprises. UPS could be a very significant window into the next quarter considering how good they are at predicting economic trends.
Some data points that will be out this week: New Home Sales, Durable Goods Orders, Jobless Claims and Consumer Sentiment.
GDP will be out on Friday and I expect this will be around 2% growth.
The final presidential debate will take place on Monday and it should be the most important one in a very long time. Candidate Romney sounded great in the first debate, had a draw in the second date last week and has all but pulled even in every poll we have seen. Traditionally, foreign policy has been a Republican strength and we don’t see any change with Governor Romney. Although President Obama, like any sitting president, has the advantage of full knowledge of the various foreign policy situations that will be discussed. He really has not shown the overall courage of his convictions and his inexperience in regards to foreign policy may show through during this debate. However, if he can use that intimate knowledge to his advantage, he can overcome that deficiency.
What will be lost in all of this is the Federal Open Market Committee meeting that will convene on Wednesday. The Fed has nothing to add to the mix this week and I don’t expect them to set any precedents.
Again, we were off base with our rosier than should be outlook for earnings. The tech sector took a hit with Microsoft (MSFT), IBM (IBM), Intel (INTC) and Google (GOOG) all missing estimates with General Electric (GE) also falling a tad short. They also lowered guidance going forward so we will have to take another look at how we view the third quarter earnings scenario and maybe lower our expectations for the fourth quarter as well.
The increase in Jobless claims helped propel the market further downward on Friday to cap off a week of disappointment from our end.
We can crow with the best of them when we are right, we also can admit our failures when we are wrong.
Now for the coming week: This will be another week of earnings. Caterpillar (CAT), United Parcel Service (UPS), and Whirlpool (WHR) all set to announce and considering the tone of this earnings season, I will have to say I don’t expect any surprises. UPS could be a very significant window into the next quarter considering how good they are at predicting economic trends.
Some data points that will be out this week: New Home Sales, Durable Goods Orders, Jobless Claims and Consumer Sentiment.
GDP will be out on Friday and I expect this will be around 2% growth.
The final presidential debate will take place on Monday and it should be the most important one in a very long time. Candidate Romney sounded great in the first debate, had a draw in the second date last week and has all but pulled even in every poll we have seen. Traditionally, foreign policy has been a Republican strength and we don’t see any change with Governor Romney. Although President Obama, like any sitting president, has the advantage of full knowledge of the various foreign policy situations that will be discussed. He really has not shown the overall courage of his convictions and his inexperience in regards to foreign policy may show through during this debate. However, if he can use that intimate knowledge to his advantage, he can overcome that deficiency.
What will be lost in all of this is the Federal Open Market Committee meeting that will convene on Wednesday. The Fed has nothing to add to the mix this week and I don’t expect them to set any precedents.