Stock Market Weekly Update, 30 March 2009
The Week Ahead: A third straight week of market gains was propelled by some positive economic numbers as the three major indices have already gained as much as 25% from the early March lows. The Case Shiller Home Price Index and consumer confidence numbers will be important numbers to watch on Monday. The ISM Manufacturing report along with construction spending and pending home sales are due by Tuesday. Watch the jobless numbers and factory orders on Thursday but especially the employment report on Friday. In another development, the G-20 Financial Summit in London starting Friday will pre-stage next week's market open.
Stocks to Watch: Shares of Plantronics (PLT) rose sharply and are solidly above the 50 day moving average after announcing plans to outsource its blue tooth headsets to a China supplier to boost profitability. KHD Humboldt Wedag International (KHD), a maker of equipment for cement and coal processing, fell sharply after a dramatic turn from profitability of 1.39 to a loss of .23 and a 50% reduction of its staff. Shares of Arbitron (ARB) have been strong of late as they received an upgrade by J.P. Morgan, but shares of Tesoro (TSO), a refining company, were weak after a downgrade by a major brokerage.
Special Note: A pause in the current but dramatic rise in stocks would not be a surprise near term as the second quarter of 2009 begins this week. Earnings expectations for Q1 have come way down from previous estimates suggesting the market may have discounted many of the bad reports to come in April. If so a continuation of the recent rally may be in the cards next month. In the meantime the debate will be whether short covering is driving the current rally or real buying based on fundamentals.
Commentary provided by Barry Ward, Registerd Principal, NobleTrading.com, Inc.
Open a Trader Account.
Stocks to Watch: Shares of Plantronics (PLT) rose sharply and are solidly above the 50 day moving average after announcing plans to outsource its blue tooth headsets to a China supplier to boost profitability. KHD Humboldt Wedag International (KHD), a maker of equipment for cement and coal processing, fell sharply after a dramatic turn from profitability of 1.39 to a loss of .23 and a 50% reduction of its staff. Shares of Arbitron (ARB) have been strong of late as they received an upgrade by J.P. Morgan, but shares of Tesoro (TSO), a refining company, were weak after a downgrade by a major brokerage.
Special Note: A pause in the current but dramatic rise in stocks would not be a surprise near term as the second quarter of 2009 begins this week. Earnings expectations for Q1 have come way down from previous estimates suggesting the market may have discounted many of the bad reports to come in April. If so a continuation of the recent rally may be in the cards next month. In the meantime the debate will be whether short covering is driving the current rally or real buying based on fundamentals.
Commentary provided by Barry Ward, Registerd Principal, NobleTrading.com, Inc.
Open a Trader Account.
posted by Daniel Pipitone at
6:36 AM
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