The market is fresh off a week of hitting new all-time highs in two of the three major indices, but what will move the markets in the coming week? Tonight we'll take a look at the economic data and major earnings reports that could move the market in the upcoming week.
Monday the 8th is Columbus Day in the United States, but the stock markets will be open. It could be expected that trading will be a little lighter than normal though on Monday. Tuesday we get the FOMC minutes from the September 18th meeting where the Fed moved to cut interest rates by 50 basis points. This will be interesting as it will give some more insight into why the Federal Reserve felt it was necessary to move by 50 basis points. Thursday will be the largest day of the week this week for economic data. On Thursday we get the Producer Price Index reading, which measures the prices of goods on the wholesale level. Probably the most important reading of the week will also come Thursday morning, in the form of retail sales. Given the concerns about consumer spending and whether it could send the economy into freefall, traders will certainly be watching retail sales numbers closely. Friday we get the preliminary reading from the Michigan consumer sentiment survey, which the market is expecting to rebound slightly from last month.
On the earnings side of things, the major flow of earnings reports doesn't begin for about another week, but this week has several fairly important companies reporting. Yum! Brands Inc. (NYSE:YUM) will report on Monday after the close. Yum will look to continue its recent growth, spurred by terrific international growth. The Mosaic Company (NYSE:MOS) will report Tuesday before the market opens. Mosaic is a company that has had tremendous earnings momentum in the past few quarters as the agriculture bull market continues to be full speed ahead. Alcoa Inc. (NYSE:AA) is set to report on Tuesday as well. Alcoa shares are higher by almost 30% on the year thus far. Monsanto Company (NYSE:MON) will report Wednesday before the market opens. Monsanto is a company that has benefited in a huge way from the recent agricultural boom both domestically and internationally. Costco Wholesale Corporation (Nasdaq:COST) will report Wednesday as well. Investors will be waiting to see if Costco is affected by any slowdown in consumer spending or if it continues to be a top performer in the retail sector. Before the open on Thursday PepsiCo (NYSE:PEP) will report its earnings. Analysts are expecting 96 cents per share. Pepsi traded at an all-time high this past week. Also on Thursday supermarket giant Safeway Inc. (NYSE:SWY) will report its earnings. Safeway shares have gained just over 10% on the year thus far.
The bulls will be looking to sustain last weeks gains, while the bears will be looking to turn this market back toward the levels of the summer. The economic and earnings numbers both have a significant impact in today's market because at this juncture there is still a huge debate as to whether this economy will continue to grow at a moderate pace or if a recession is near. The debate will also continue as to what the Federal Reserve should and will do at its next meeting at the end of the month.
Have a good week of investing and keep on growing those funds!
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