Market Update-Earnings Season Ending Soon. Lange Financial Services Comments. Market Radar.
Sun, 04.24.11 9:30pm EST
LANGE FINANCIAL SERVICES. MARKET UPDATE SUNDAY APRIL 24, 2011. 7:00PM
This week, 186 companies in the S&P Index of 500 companies will report their quarterly earnings. This will mark the end of this very profitable earnings period. Last year, the market peaked on April26th, followed by a three-month Consolidation/Correction period into July/August 2010. From that time, we have issued repeated bullish market comments and specific stocks we believed attractive in the subsequent nine months.
At this juncture, while a pullback of 3% to 5% is a realistic expectation, we do not believe that any major overall correction is at hand. The S&P 500 is only selling at approximately 12 times our 2012 forecast of $110, a valuation that is historically low. Valuations have reached as high as an unrealistic 25 times earnings. Our longstanding investment policy is to accumulate strong and growing companies during periods of weakness. See “Favored Stocks” by clicking here.
We view a pullback as healthy and remain bullish overall. We are selectively positive on companies with a strong earnings outlook.
MARKET RADAR FOR THE WEEK OF APRIL 25,2011
There are two important things to look for this week, in addition to a large amount of earnings releases.
The first will be the FOMC rate decision on Wednesday. The biggest question is what will happen when QE2 ends?
Secondly, on Thursday the GDP number will be released. Since the Japanese earthquake, most major economist have downgraded their GDP numbers.
From a micro level it’s still earnings season. Some names to watch next week are Netflix (NFLX), Proctor and Gamble (PG), Amazon (AMZN), Baidu (BIDU), and Caterpillar(CAT).
Monday, April 25
US Economics
10:00 New Home Sales
Global Economic Data
Australia Conference Board Leading Index
Earnings
Before: ABFS, BEAV, CYOU, CBE, KMB, POP, SOHU
After: AAN, AFOB, CHE, ELX, ESRX, JJSF, JEC, MAS, NFLX,
Tuesday, April 26
US Economics
09:00 Case-Shiller 20 City Index
10:00 Consumer Confidence
Global Economic Data
New Zealand Business Confidence
Australia Consumer Price Index
China Industrial Profits
Swiss Trade Balance
Swiss UBS Consumption Indicator
Earnings
Before: MMM, AGCO, ACI, CPLA, COH, KO, CMI, DAL, F, HSY, ITW, LMT, MHP, ODP, RYN, SPAR, TLAB, X, UA, UPS, LCC, VLO, WTI, WAT
After: APKT, AMZN, BRCM, BWLD, CBG, FTI, FORM, HTZ, LMN, IRBT, NBR, PNRA, RFMD, SIMG, SSC, SWK, VSI
Wednesday, April 27
US Economics
07:00 MBA Mortgage Purchase Index
08:30 Durable Orders
08:30 Durable Orders ex Transportation
10:30 Crude Oil Inventories
02:15 FOMC Rate Decision
Global Economic Data
German CPI
Great Britain Nationwide House Prices
German Consumer Confidence
Great Britain GDP
Euro-Zone Industrial New Orders
New Zealand Rate Decision
Japan Household Spending
Tokyo CPI
Japan Industrial Production
Earnings
Before: ATI, AVY, ABX, BA, BP, EAT, CIT, COP, GLW, DPS, ENR, EXC, GD, HES, LCRY, MSO, NOV, EDU, OSTK, PFCB, SVVS, SO, WHR, WLP
After: AFL, AKAM, BIDU, COG, CTXS, SCOR, EBAY, EFX, EQIX, DAVE, FLS, KONA, LOGM, MORN, OTEX, RA, SFLY, SKX, SBUX, WLL
Thursday, April 28
US Economics
08:30 Initial Claims
08:30 Continuing Claims
08:30 GDP-Adv
08:30 GDP Deflator
08:30 Initial Claims
10:00 Pending Home Sales
Global Econ Data
Bank of Japan Target Rate
Japan Housing Starts
German Employment Change
New Zealand Trade Balance
Earnings
Before: AET, AM, ABC, APA, BWA, BCO, BMY, CELG, CME, CCE, CL, XOM, GWR, GIGM, HS, IMAX, ITG, KBR, MHS, BABY, OXY, OMX, OSK, PEP, POT, PG, PHM, RTN, RS, RIMG, SWY, S, STRA, TRI, TWC, TYC, VIA.B, WM, WATC, ZMH
After: AEM, ALGT, ATHN, CELL, CLF, DECK, DLB, EXPE, MSFT, MPWR, MWW, OCLR, PMCS, QDEL, SWKS, VRSN, VPRT
Friday, April 29
US Economics
08:30 Personal Income
08:30 Personal Spending
08:30 PCE Prices-Core
08:30 Employment Cost Index
09:45 Chicago PMI
09:55 Michigan Sentiment
Global Econ Data
Euro-Zone CPI
Euro-Zone Consumer Confidence
Euro-Zone Unemployment Rate
Canada GDP
Earnings
Before: AGP, CAT, DHI, GT, LEA, MRK, NWL, OFG, PPC, RUTH, VFC, WY
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