The Week Ahead: A slowdown in hiring has the unemployment rate at its highest level in 4 months and suggests inflation is under control. Listen for comments from Fed chairman Ben Bernanke regarding recent economic data when he speaks in Omaha on Tuesday. Before that the ISM non-manufacturing survey is released on Monday. On Wednesday, the 4th Q productivity and labor cost numbers are due along with oil and gasoline inventories. Thursday brings 3 reports: December wholesale trade, January chain store sales, and weekly jobless claims.

Stocks to Watch: Important earnings reports continue to stream in this week. On Tuesday Cisco (CSCO) reports along with VF Corp.(VFC) a company in the branded clothing market. Wednesday, Whirlpool (WHR) and Disney (DIS) announce. A busy Thursday brings releases from Aetna (AET), Pepsico (PEP), Bunge Limited (BG) A global agribusiness and food company, and Curtiss-Wright (CW) a diversified company. Finally, Friday Hasbro (HAS) and Weyerhauser (WY) both report.

Special Note: As the earnings season winds down this week and next and the heavy new monies entering the market from retirement accounts in the first quarter ends, the markets will have to contend with a continued imbalance of technical and fundamental factors. Some of these include the negative savings rate, relatively high oil prices, an increasingly hostile geopolitical environment, low presidential approval ratings not seen since the Nixon years, a persistent flow of stock option backdating scandals, and now declining new high/ new low ratios. A selective, balanced, and hedged portfolio is increasingly important.


Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.

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