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Next Week’s Tape: A Holiday, and Earnings Onslaught
By Paul Vigna and Kathleen Madigan
The big event next week will occur while the market’s not even open, and after that, it’ll be another raft of earnings reports (not that anybody seems to care about earnings these days).
The markets are closed on Monday for Martin Luther King Day, but that presents a rare confluence: this year, the holiday happens to fall on the same day as the president’s inauguration. While the inauguration isn’t necessarily a market mover, it’ll signal that D.C.’s really ready to get down to business, and there’s a lot of business on the table.
Hopefully, the donkeys and elephants are in a cooperative mood.
Otherwise, the big event next week is the continuation of earnings season, with reports from a slew of companies, including Apple Google GOOG -0.96%IBM IBM +0.42%, J&J, Netflix McDonald's MCD +0.54%, 3M Starbucks SBUX +0.57%and Microsoft MSFT 0.00%. It’s been another weak quarter for profit growth – expected to come in only about 2% ahead of last year – but the market doesn’t seem to care these days about small matters like that, as it marches to ever fresher multi-year highs.
More reports about the housing market, though? The market will want to hear those.
New information on the strength of the housing recovery will be released next week, when reports on sales and prices are announced. They are expected to show the recovery is firming.
The National Association of Realtors will report existing home sales Tuesday, when U.S. financial markets reopen after Monday’s observation of Martin Luther King Day.
Economists surveyed by Dow Jones Newswires predict resales increased 2.0% in December to an annual rate of 5.14 million.
On Wednesday the Federal Housing Finance Agency will report its measure of home prices. Economists expect the FHFA home-price index increased 0.8% in November. The FHFA index hasn’t fallen since January 2012. Rising prices are a sign of better balance between supply and demand–after years of oversupply in the real-estate markets.
New home sales are on tap Friday. The median forecast is for 391,000 new homes sold in December, up 3.7% from 377,000 homes sold in November.
MarketWatch’s Polya Lesova stopped by the Markets Hub this morning to preview the week ahead:
Here’s your week ahead calendar:
Monday:
Markets closed for Martin Luther King Day.
Tuesday
Economics:
10:00 a.m. ET: December Existing Home Sales: seen: +2.0%; last: +5.9%
10:00: Richmond Fed January Manufacturing Survey
Earnings:
AMD, CA, CSX, Delta Air DuPont DD +1.36%, Google, IBM, J&J Kansas City Southern KSU -0.27%Norfolk Southern NSC +1.14%, Travelers, Verizon
Wednesday
Economics:
9:00: FHFA November Home Prices: seen: +0.8%; last: +0.5%
Earnings:
Abbott Labs ABT -0.12%Amgen AMGN -2.22%, Apple, Coach General Dynamics GD -0.51%, McDonald’s, Netflix, United Tech US Airways LCC -0.28%, WellPoint
Thursday
Economics:
8:30: Weekly Jobless Claims: seen: 360,000; last: 335,000
9:00: Markit January Flash PMI
10:00: December Leading Index: seen: +0.4%; last: -0.2%
11:00: Kansas City Fed January Manufacturing Survey
Earnings:
3M AT&T T +0.72%, Baxter Bristol-Myers BMY +0.55%, E*Trade Heartland Express HTLD +0.22%, J.B. Hunt KeyCorp KEY -0.64%Knight Capital KCG -0.54%Lockheed Martin LMT -0.82%, Microsoft Nokia NOK1V.HE -3.16%Raytheon RTN -0.26%, Starbucks, Union Pacific, Xerox
Friday
Economics:
10:00: December New Home Sales: seen: +3.7%; last: +4.4%
Earnings:
Halliburton Honeywell HON +0.74%Kimberly-Clark KMB +0.57%Procter & Gamble PG +0.39%, Weyerhaeuser
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