Looking ahead to this week in the market, the week is likely to start off very slow, but by the end of the week we are liable to see a significant ramp up in activity. The major market indices will close early on Monday the 31st for New Year's Eve, and will be closed all day on New Year's Day, January 1st. The trading will likely be extremely light Monday and probably pretty light on Wednesday as traders return slowly, but as catalysts increase and traders return the end of the week may be a different story.
Major economic reports this week
- On Wednesday at 2pm the FOMC Minutes from December 11th will be released. The minutes will be closely watched for clues as to the future path of the FOMC.
- On Friday the employment report that every will want to keep an eye on will be released at 8:30 am. With increased talk of a economic recession possibly already underway, or coming very soon, this report takes on increased importance. It would be hard to imagine a scenario where the jobs picture stays strong and a recession takes place, and it would also be hard to imagine the economy avoiding a recession if the employment picture turns south in a hurry.
Notable earnings reports this week
Thursday January 3rd
- Bed Bath and Beyond (Nasdaq:BBBY) BBBY is expected to report 52 cents per share Thursday. This is another retail stock that has been under significant pressure this year as worries about a slowdown in consumer spending hit the sector hard.
- Monsanto Company (NYSE:MON) Monsanto is expected to bring in 35 cents. This has been one of the hottest stocks in the past year because of the amazing boom in agriculture. This stock was also named to GrowYourFunds list of top 5 portfolio building blocks for 2008.
- Sonic Corporation (Nasdaq:SONC) The first of the fast food restaurants to report, SONC is expected to report 21 cents. Sonic has a unique model of drive-in service, so at times this stock can go in a separate direction than most fast food companies.
The earnings reports are just starting to trickle in. Look for earnings season to kick into full gear around the end of this month.
The employment report is a number that all investors should keep a close eye on. It is very possible that this report will not only shape how Friday's trading goes, but also how the trend sets up for the coming months. Have a great week and Happy New Year to everyone!
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