Consumer Confidence, GDP Figures Expected
Although first-quarter earnings have been relatively strong so far, there are enough questions, especially regarding consumer spending, to make investors pause. Combine that with lingering inflation worries and another rise in oil prices, and you have a jittery Wall Street that seems to be ready to sell at the slightest provocation.
That happened Friday on reports that North Korea might test a nuclear weapon.
The fact that stocks ended last week higher shouldn’t be taken as a sign that things are looking better. Investor sentiment remains mixed at best, and the most seemingly mild news has caused sell-offs in individual stocks, entire sectors and even the whole market.
Investors will need to see strong economic data and unreservedly positive earnings -- several hundred companies are reporting this week -- if the markets are to rise to where they were just two weeks ago.
Wall Street finished the week with modest gains, and bulls can point to a strong performance from the Nasdaq composite index, which has lagged behind the other indexes. For the week, the Dow Jones industrial average rose 0.7% after Thursday’s 206-point gain, the Standard & Poor’s 500 index was up 0.83% and Nasdaq climbed 1.26%.
Investors will have a chance to see how higher energy prices could affect the economy through the coming week’s economic data.
Tuesday the Conference Board will release its consumer confidence index for April. With the stock market tumbling and oil prices rising last month, economists expect the index to fall to 98 from a February reading of 102.4.
The effect of higher energy prices could come through in the first reading on first-quarter gross domestic product, due Thursday. The GDP is expected to grow at an annual rate of 3.5%, down from 3.8% in the fourth quarter of 2004 -- but some analysts believe that the GDP could be even lower.
From Associated Press
This Week’s Datebook
Today
* National Assn. of Realtors reports on existing-home sales for March.
* Quarterly earnings released by Cendant Corp., Exelon Corp., Kimberly-Clark Corp., Reebok International Ltd. and SBC Communications Inc.
Tuesday
* Commerce Department reports on new-home sales for March.
* Conference Board reports its monthly consumer confidence index.
* Quarterly earnings released by Amazon.com Inc., 7-Eleven Inc., American Express Co., Corning Inc., DuPont Co., Hilton Hotels Corp., Level 3 Communications Inc., Lockheed Martin Corp., Martha Stewart Living Omnimedia Inc., Occidental Petroleum Corp., Sara Lee Corp. and Wm. Wrigley Jr. Co.
Wednesday
* Commerce Department reports on durable goods orders for March.
* Bank of America Corp.’s annual meeting.
* Quarterly earnings released by WellPoint Inc., Reynolds American Inc., Anheuser-Busch Cos., Biogen Idec Inc., Boeing Co., Colgate-Palmolive Co., ConocoPhillips, Kerr-McGee Corp., Phelps Dodge Corp., Starbucks Corp., Verizon Communications Inc. and XM Satellite Radio Holdings Inc.
Thursday
* Commerce Department reports on gross domestic product for the first quarter.
* Labor Department reports on weekly jobless claims.
* Freddie Mac, the mortgage company, reports on mortgage rates.
* Annual meetings of ChoicePoint Inc. and Altria Inc.
* Quarterly earnings released by Aetna Inc., Bristol-Myers Squibb Co., Burlington Northern Santa Fe Corp., CSX Corp., Comcast Corp., DaimlerChrysler, Dow Chemical Co., Exxon Mobil Corp., Gateway Inc., Georgia-Pacific Corp., Kellogg Co., Microsoft Corp., Molson Coors Brewing Co., Nextel Communications Inc., Northrop Grumman Corp., Procter & Gamble Co., Raytheon Co., Unocal Corp., Sirius Satellite Radio Inc., Waste Management Inc. and Wendy’s International Inc.
Friday
* Commerce Department reports on personal income and outlays for March.
* Labor Department releases employment cost index for the first quarter.
* Annual meeting for Media General Inc.
* Quarterly earnings released by Archer Daniels Midland Co., Cardinal Health Inc., Clear Channel Communications Inc. and ChevronTexaco Corp.
