Weekly Market Letter January 29, 2007
The Week Ahead: Although the Fed is expected to hold interest rates steady this Wednesday, chances are increasing that the next move will be to raise rates do to recent inflation risks from the economy. The Fed will conte mplate data from Tuesday's consumer confidence index for January, the 4th quarter GDP report, and employment cost index due out Wednesday. In addition, look for construction spending numbers for December. Thursday has personal income and spending numbers as well as January's auto sales. Finally, the week closes with December factory orders and the all important January employment report.
Stocks to Watch: The market will closely examine earnings reports from bell weather companies. Proctor & Gamble (PG) numbers will be influenced strongly by its Gillette subsidiary. 3M (MMM) earnings are exposed to the flat panel TV market. Altria (MO) will report numbers and update on possible spin-offs. Boeing (BA) revenues are seen to be up 16% as its stock is near a 52 week high. Technology driven Google (GOOG) will be closely watched to see if it beats the $2.92 earnings estimate. Also watch Verizon (VZ) and Exxon Mobile (XOM) to impact their respective industries.
Special Note: The current market stretch is now the second longest period in the last 75 years without a 10% correction and is 30% longer than the average bull market duration. One interesting fact about February as it begins this week, it is the only month out of the 12 that has not marked a top in the DOW or S&P 500 in any given year since 1966. To protect against this possibility, one strategy might be to raise cash, buy defensive stocks, and be very selective with long or short positions.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com,Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
Stocks to Watch: The market will closely examine earnings reports from bell weather companies. Proctor & Gamble (PG) numbers will be influenced strongly by its Gillette subsidiary. 3M (MMM) earnings are exposed to the flat panel TV market. Altria (MO) will report numbers and update on possible spin-offs. Boeing (BA) revenues are seen to be up 16% as its stock is near a 52 week high. Technology driven Google (GOOG) will be closely watched to see if it beats the $2.92 earnings estimate. Also watch Verizon (VZ) and Exxon Mobile (XOM) to impact their respective industries.
Special Note: The current market stretch is now the second longest period in the last 75 years without a 10% correction and is 30% longer than the average bull market duration. One interesting fact about February as it begins this week, it is the only month out of the 12 that has not marked a top in the DOW or S&P 500 in any given year since 1966. To protect against this possibility, one strategy might be to raise cash, buy defensive stocks, and be very selective with long or short positions.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com,Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
email: info@nobletrading.com
phone: 877.872.3311
web: http://www.nobletrading.com
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