The market again traded in a range. The tenor of the market over the past two weeks has changed from optimistic to apprehensive. Inflation fears and commodity markets worked in tandem to throw a damper on the markets. These concerns were balanced by positive earnings results last week. The market mavens remain bullish, but their most recent market pronouncements have been tempered with phrases like "easing demand", "trimming risk exposure", "lower degree of confidence", "slowing global industrial demand", and "uncertainty." These buzzwords were used as qualifiers by the "experts" who are constitutionally incapable of uttering the words - "I don't know." Well I don't know which direction the market is going. One of my colleagues recently asked me if I were bullish or bearish on the market. I am neither. One doesn't need to knwo which direction the market is going in order to make money.
The S&P 500 (SPX) closed at 1,337.2 or down 0.18%, the Dow Jones Industrials closed at 12.595.75 down 0.34%, the NASDAQ 100 (NDX) closed at 2,379.24 or down 0.17%, the Russell 2000 closed at 835.67 up 0.28%, and the Dow Jones 30 Industrials closed at 12.595.75 down 0.34%,. Implied volatility for the indexes - SPX (VIX). RUT (RVX) and NDX (VXN) - were down.
This week's economic focus is on the housing reports on Tuesday and Wednesday. The FOMC minutes should give us guidance concerning post - QE2 policy. Earnings season winds down this week. Lowes and Home Depot will provide guidance about the current and future status of the housing sector. Dell and Hewlett-Packard earnings and guidance will provide direction for the future of the home and mobile computing markets. Most equity options cease trading Friday after the close. A number of index options - RUT, SPX, NDX, MNX, DJX, VIX cease trading at the close on Thursday. The cash settlement will be determined by the opening prices of each individual componrnt of the index.
Remember:
"Chance favors the Prepared Mind." - Louis Pasteur
This week's economic news:
Monday May 16:
Economic: Empire State Manufacturing Survey - 8:30.
Tuesday May 17:
Economic: April Housing Starts - 8:30, ICSC- Goldman Sachs Store Sales - 8:45, Redbook - 8:55, April Industrial Production - 9:15, April Capacity Utilization - 9:15
Earnings: BMO: Home Depot (HD), Vodafone (VOD), Wal-Mart (WMT). AMC: Analog Devices (ADI), Dell (DELL).
Wednesday May 18:
Economic: EIA Petroleum Status Report (Weekly Inventory) - 10:30, FOMC Minutes - 2:00.
Earnings: BMO: Abercrombie & Fitch (ANF), BJ's Wholesale (BJ), Deere & Co. (DE), Staples (SPLS), Target (TGT). AMC: Hewlett-0Packard (HPQ), Limited (LMT). Petsmart (PETM), Pan American Silver (PAAS), Synopsis (SNPS).
Other: Senate votes on ending oil subsidies.
Thursday May 19:
Economic: Weekly Jobless Claims - 8:30, April Existing Home Sales - 10:00, April Leading Indicators - 10:00, Philadelphia Fed Survey - 10:00.
Earnings: BMO: Dollar Tree Stores (DLTR), GameStop (GME), Sears Holding (SHLD), Tidewater (TDW), Toro (TTC). AMC: Salesforce.com(CRM), Foot Locker (FL), Gap (GPS).
Other: AM settled options stop trading at close - DJX, MNX, NDX, RUT, SPX, VIX, VXN.
Friday May 20:
Economic:
Earnings: BMO: Ann Taylor (ANN), Donaldson (DCI).
Other : Options expiration.
No comments:
Post a Comment