ADVISORY SQUAWK BOX – WEEKLY HIGHLIGHTS (WEEK OF July 15TH, 2013)

Audio Podcast Here:  Squawk 7-15

WEEKLY MARKET UPDATE

This week, investors will continue to focus on second-quarter earnings reports, as the Dow and S&P 500 re-approach their all time highs. Investors will also be looking on Wednesday for comments by Fed Chairman Ben Bernanke in his semiannual testimony before Congress on the schedule for cutbacks in asset purchases.

Economic Data: We are scheduled for a heavy week on the economic data front, highlighted by Monday’s Retail Sales & Business Inventories; Tuesday’s CPI and Industrial Production; Wednesday’s Housing Starts, Building Permits & Fed Beige Book and Thursday’s Weekly Jobless Claims Data & Philadelphia Fed Report. See below for full list of weekly economic reports.

Corporate Earnings: Of the 26 companies in the S&P 500 that have reported earnings to date for Q2 2013, 65% have reported earnings above analyst expectations, This is higher than the long-term average of 63% and below the average over the past four quarters of 67%. 44% of companies have reported Q2 2013 revenue above analyst expectations. This is lower than the long-term average of 61% and lower than the average over the past four quarters of 48%. During the week of July 15, 77 S&P 500 companies are scheduled to report earnings for Q2 2013. In the S&P 500, there have been 97 negative EPS preannouncements issued by corporations for Q2 2013 compared to 16 positive EPS preannouncements. See below for full list of corporate earnings reports. 

Crude Oil: To begin the week, NYMEX WTI Crude Oil is trading around the $106.00 a barrel level & Brent Crude is trading just above $108.00 a barrel.  In the 2013 YTD period, NYMEX WTI Crude Oil is up  almost 13% while Brent Crude is up 1%.

– Currency: The dollar has been gaining ground as the market reassessed U.S. Federal Reserve Chairman Ben Bernanke’s comments last week that highly accommodative monetary policy is set to remain in place for the foreseeable future. Meanwhile, the rise in the dollar has been pressuring gold and soft commodity prices.

____________

PREVIOUS WEEK RE-CAP:  (7/8 – 7/12)

Monday (7/8) – Stocks advanced, heading into the start of earnings season, building on gains sparked by last week’s robust employment report and pushing the S&P 500 closer to its all-time high set in May.

(S&P 500 +0.5%)

Tuesday (7/9) – Stocks rose for the fourth session in a row as investors bet that companies will be able to surpass the low bar that has been set for earnings season, leaving room for better-than-expected results that could fuel the rally further.

(S&P 500 +0.7%)

Wednesday (7/10) – The Dow and the S&P 500 ended little changed as investors tried to gauge when the Federal Reserve may scale back on its economic stimulus.

(S&P 500 +0.1%)

Thursday (7/11) – The S&P 500 and Dow industrials closed at record highs, a day after Federal Reserve Chairman Ben Bernanke reasserted that monetary policy will remain accommodative for some time.

(S&P 500 +1.4%)

Friday (7/12) – Stocks edged higher on strong earnings from major banks, but gains were capped by losses at Boeing, which fell after one of its Dreamliner planes caught fire in London.

(S&P 500 +1.0%)

For the previous week, the DJIA rose 2.2%, the S&P 500 gained 3%, and the NASDAQ added 3.5%.

To begin the current week, the S&P 500 is up approx. 17.8% in the year-to-date period.

Technical Update:  In the latest week, the S&P 500 made a new closing high on Thursday and Friday. Looking ahead, chart watchers and the electronic program trading community will be looking to see if it can push above the all-time high of 1,687  as support now exists at the 1,650 level.  However, if the Index falls back below 1,650, traders will begin to anticipate a move into the 1,600 support band

Key Technical Levels (S&P 500):

On the upside (resistance) – 1,687 (new all-time intra-day high)

On the downside (support) – 1,650, 1,625, 1,600, 1,550, 1,540, 1,525 are the next major marks in range on the charts.

 * 50-day moving avg. = 1,625 & 200-day moving avg. = 1,540

____________

MAIN EVENTS OF THE UPCOMING WEEK:  (7/15 – 7/19)

MONDAY (7/15)

 – 8:30 AM ET – Retail Sales – Jun – Expectations = 0.7%

– 8:30 AM ET – Empire Manufacturing – Jul – Expectations = 3.6

– 10:00 AM ET – Business Inventories – May – Expectations = -0.1%

– China issues quarterly GDP, monthly retail sales, and industrial production.

– Markets in Japan are closed.

Citigroup Inc Earnings – BMO

– Cintas Corporation Earnings – AMC

TUESDAY (7/16)

– 8:30 AM ET – CPI – Jun – Expectations = 0.30%

– 9:15 AM ET – Industrial Production – Jun – Expectations = 0.30%

– 9:15 AM ET – Capacity Utilization – Jun – Expectations = 77.70%

– Kansas City Fed President Esther George speaks there about “Economic Conditions and Agriculture”; San Francisco’s John Williams participates in discussion, “A Defense of Moderation in Monetary Policy,” in Vancouver.

– Markets are closed in Israel and Chile.

– Comerica Incorporated Earnings – BMO

– Goldman Sachs Group Inc. Earnings – BMO

– Johnson & Johnson Earnings – BMO

– Coca-Cola Co Earnings – BMO

– Mosaic Co Earnings BMO

– CSX Corporation Earnings – AMC

– Yahoo Inc Earnings – AMC

WEDNESDAY (7/17)

– 8:30 AM ET – Housing Starts – Jun – Expectations = 958K

8:30 AM ET – Building Permits – Jun – Expectations = 1000K

– 2:00 PM ET – Fed’s Beige Book – Jul

Fed Chairman Ben Bernanke gives his semiannual testimony on monetary policy before the House Financial Services Committee. He’ll likely continue with his “good-cop, bad-cop theme of ‘yes, we’re tapering, but no, we’re not tightening,’ ” says O’Sullivan.

Bank of Canada’s Stephen Poloz presides over his first meeting. BOC is likely to hold rates steady.

Bank of America Corp Earnings – BMO

– Abbott Labs Earnings – BMO

– WW Grainger Earnings Inc Earnings – BMO

– Mattel Inc Earnings – BMO

– PNC Financial Services Earnings – BMO

– St. Jude Medical Center Earnings – BMO

– Textron Earnings – BMO

– US Bancorp Earnings – BMO

– American Express Earnings – AMC
– Ebay Inc Earnings – AMC

– IBM Earnings – AMC

– Intel Corporation Earnings – AMC

– Kinder Morgan Inc Earnings – AMC

– Sandisk Corporation Earnings – AMC

THURSDAY (7/18)

– 8:30 AM ET – Weekly Jobless Claims – Expectations = 348K

– 10:00 AM ET – Philadelphia Fed – Jul – Expectations = 5.3

10:00 AM ET – Leading Indicators – Jun – Expectations = 0.30%

Bernanke reprises his Humphrey-Hawkins testimony, this time before the Senate Banking Committee.

– Dover Corporation Earnings – BMO

-Philip Morris International Earnings – BMO

– Morgan Stanley Earnings – BMO

– Amphenol Corp Earnings – BMO

– Baxter International Earnings – BMO

– Blackrock Inc Earnings – BMO

– Danaher Corporation Earnings – BMO

– Johnson Controls Earnings – BMO

– Nucor Corporation Earnings – BMO

– Quest Diagnostics Earnings – BMO

– Safeway Inc Earnings – BMO

– United Health Group Earnings – BMO

– Union Pacific Earnings – BMO

– Verizon Communications Earnings – BMO

– Advanced Micro Devices Earnings – AMC

– Chipotle Mexican Grill Inc Earnings – AMC

– Google Inc Earnings – AMC

– Microsoft Corp Earnings – AMC

FRIDAY (7/19)

– G-20 finance ministers, central bank governors begin meetings in Moscow.

Ingersoll Rand Plc Earnings – BMO

– Rockwell Collins Earnings – BMO

– First Horizontal national Corp Earnings – BMO

– General Electric Earnings – BMO

– Honeywell International Earnings – BMO

– Laboratory Corp of America Holdings Earnings – BMO

– State Street Corp Earnings – BMO

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: