Weekly Outlook
Stocks opened modestly higher today with an absence of any earnings, merger, or economic events as only the Russell 2000 was down about 4 points at press time. Last week’s correction was the worst in several years and happened pretty quickly all things considered. Here are the events that will shape this week’s trading environment.
Thusday, look for strong job growth to lift personal income 0.5% in June although weaker spending will likely rise only about 0.1%. Consumer confidence is expected to rise to about 105.0 in July from a June reading of 103.9, while the Chicago purchasing managers index is expected to decline below the 60.2 mark recorded in June. General Motors reports earnings and expects to show a profit, while fashion maker Coach reports fourth quarter earnings with the consensus expecting $0.41 vs. $0.31 in the year ago frame.
Wednesday, motor vehicle sales are expected to show an annualized rate of 16.1 million vehicles in July, while Time Warner, Disney, and Kraft Foods are among the larger firms reporting earnings. Challenger, Gray, & Christmas report July job cut announcements while the ISM manufacturing index is seen edging down to about 55.5 in July. Thursday, look for the Bank of England to hold rates steady, while Dow component Eastman Kodak reports second quarter numbers.
Friday, expect non-farm payrolls to rise by 135,000 in July, with more than 100,000 jobs in education, leisure and hospitality, and business services offsetting losses from construction and manufacturing. Unemployment is expected to hold at 4.5% for the fourth straight month according to Lehman Brothers. The ISM non-manufacturing index is seen dropping to 57.2 in July, while Proctor & Gamble report fourth quarter results before the opening bell.
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