After last weeks holiday-shortened week of trading, the markets will be open for a full week of action and investors will certainly be watching the indices closely. Selling pressure intensified in the last few full trading sessions, and many market technicians are watching key support levels that are very close to being breached. Will this be another bull market correction or is this the start of something bigger on the downside?
There are several pieces of economic data to watch this week for clues as to the health of the nations economy. Tuesday morning is the all-important consumer confidence number for November, which is expected to weaken further to 92.0. Large and sustained drops in consumer confidence can be quite concerning for the economy since it generally is a precursor of a drop in consumer spending. Durable goods and existing home sales are set to be reported on Wednesday morning. Personal income and personal spending, numbers that I like to watch to see the financial health of the American consumer, will be reported Friday morning.
Earnings season has certainly wound down for the most part, but there are definitely a few noteworthy reports due out this week. The retailers will be the main group that has several notable reports due out this week, but a couple of firms from other sectors will also be watched closely.
Tuesday November 27th
- American Eagle Outfitters (NYSE:AEO) The leading teen retailer is expected to report 45 cents per share. The stock sits close to its yearly low.
- Analog Devices (NYSE:ADI) ADI is expected to report 39 cents per share on Tuesday after the close.
- Staples (Nasdaq:SPLS) The office products company is expected to bring in 40 cents per share this quarter. The stock has languished along with other specialty retailers lately.
Wednesday November 28th
- Coldwater Creek (Nasdaq:CWTR) Coldwater Creek has been a symbol of all that can go wrong with a retailer of late. Investors will be looking for some sort of a sign that things may be turning around here.
Thursday November 29th
- Dell Inc. (Nasdaq:DELL) Dell will report after the bell on Thursday and is expected to bring in 35 cents per share. The company is looking to continue to show investors that it is returning to the tech bellweather it was a few years ago.
- Sears Holdings Corporation (Nasdaq:SHLD) Sears Holdings will report on Thursday and investors are clearly worried that the news will not be good. The stock has been crushed of late and sits at a two year low.
Friday November 30th
- Tiffany and Company (NYSE:TIF) This one will be watched very closely as investors will want to see if this high end retailer has been able to stay strong or has been hit by the spending slowdown that has been seen in other high end names.
Keep your eyes on the internals of the market this week and the volume on up days versus the volume on down days. Volume is something I think takes on increased importance when the market is either bottoming or breaking down.
Comment Preview