Housing, profit reports are due
Wall Street surged higher last week, but that’s cold comfort to people whose stock portfolios are still down more than 10% this year.
The week’s better-than-expected earnings news, which helped the Street claw itself out of bear market territory, was hardly definitive. Quarterly results from some of the big banks came in above forecasts, but expectations were extremely low. Crude oil prices retreated from record highs but are still up more than 70% since last summer.
Some investors hope last week’s developments were the first signs that the economy will improve later this year or early next year. But with the housing market still sinking -- not to mention more earnings left to report -- it’s hard for many investors to justify big bets on an upswing.
“I think the epicenter of the whole thing has been, and continues to be, housing prices,” said Bob Andres, chief investment strategist for Envestnet.
This week, with quarterly losses expected from Wachovia Corp. and Washington Mutual Inc., the market will also get data on existing- and new-home sales. The National Assn. of Realtors is expected to report that sales of existing homes fell in June. Economists believe the Commerce Department will report that new-home sales also declined.
This week, investors will be curious to see whether oil prices keep falling -- they closed below $130 a barrel Friday -- and whether other earnings come in strong. Hordes of major companies release their quarterly reports this week, including Bank of America Corp., American Express Co., Merck & Co., Pfizer Inc., Caterpillar Inc., United Parcel Service Inc., Yahoo Inc., Boeing Co., McDonald’s Corp., Pulte Homes Inc. and 3M Co.
In economic data, the Conference Board releases its June index of leading indicators today. Economists forecast a modest decline of 0.1%.
On Wednesday, the Federal Reserve releases its so-called beige book report, which describes economic conditions in various parts of the country.
The Labor Department will issue its weekly report of initial jobless claims on Thursday, and the market anticipates a rise.
And Friday, the Commerce Department reports on durable goods orders and the University of Michigan releases its consumer sentiment reading. Orders for durable goods are expected to have fallen 0.4 % in June compared with May, and sentiment is expected to have slipped slightly in July compared with June.
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At a glance
Today
Treasury bill auction.
Conference Board releases its index of leading economic indicators.
Quarterly earnings reports due from American Express, Apple, Bank of America, Boston Scientific, Hasbro, Merck, Schering-Plough and Texas Instruments.
Tuesday
Quarterly earnings reports due from AK Steel, Biogen Idec, Caterpillar, CME Group, DuPont, E-Trade Financial, Freeport-McMoRan Copper & Gold, Halliburton, JetBlue Airways, Lockheed Martin, Norfolk Southern, Royal Caribbean Cruises, SuperValu, United Airlines parent UAL, United Parcel Service, UnitedHealth Group, US Airways, Wachovia, Washington Mutual, Western Union and Yahoo.
Wednesday
Federal Reserve reports on regional economic conditions.
Quarterly earnings reports due from Allstate, Amazon.com, Anheuser-Busch, AT&T;, Boeing, ConocoPhillips, General Dynamics, Hershey, McDonald’s, New York Times, Northwest Airlines, PepsiCo, Pfizer, Philip Morris International, Pulte Homes, Qualcomm, Sallie Mae, Travelers, WellPoint, Whirlpool and Wyeth.
Thursday
National Assn. of Realtors reports on sales of existing homes for June.
Labor Department reports on weekly jobless benefit claims.
Freddie Mac reports on mortgage rates.
Senate Finance Committee holds hearing on the Cayman Islands focusing on offshore tax issues.
Quarterly earnings reports due from 3M, AutoNation, Bristol-Myers Squibb, Burlington Northern Santa Fe, Dow Chemical, Eli Lilly, E.W. Scripps, Kimberly-Clark, Lee Enterprises, McClatchy, Medco Health, Occidental Petroleum, Raytheon, Southwest Airlines, Starwood Hotels & Resorts, Union Pacific, Wynn Resorts and Xerox.
Friday
Commerce Department reports on new-home sales and durable goods orders for June.
Quarterly earnings reports due from Arch Coal and Netflix.
Source: The Associated Press
