The Week Ahead: A better than expected durable goods and home sales report for July was sited as reasons for the recent rally in stocks, but can business sector confidence lead consumer confidence in the months ahead? The existing home sales report for July is out on Monday. The August consumer confidence index is released on Tuesday along with the FOMC Minutes report. The preliminary 2nd quarter GDP numbers come out on Thursday. Finally, Friday brings July factory orders along with the personal income and spending reports.

Stocks to Watch: The CEO of Countrywide Financial (CFC) commented that the deteriorating housing industry could lead the country into recession sending many other financial stocks lower after a previous rebound. A positive backdrop for steel pricing helped shares of steel companies like Nucor (NUE), US Steel ( X), AK Steel (AKS), and Arcelor Mittal (MT), but most of these look extended after recent rallies. Shares of Metro PC Communications (PCS) rose on speculation of a merger with Leap Wireless Int'l (LEAP)

Special Note: Although the DOW has corrected 10% on an intra-day basis from its high recently, the record for a 10% correction on a closing basis is in its 54th month indicating there is further to go below the 12517 level reached on August 16. Pre-holiday trading may keep the markets steady this week, but one note of significance is the Kansas City Federal Reserve Conference in Jackson Hole, WY this week. Housing and monetary policy topics will be discussed and thus hints at a Fed funds rate change could be in the offing.



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


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