The tenor of the market changed yet again last week. Some market pundits started to characterize the two week drop at the beginning of April as “the market correction.” Strong corporate earnings led by Apple (AAPL) and AMZN) combined with Ben Bernanke’s stated plans to keep interest rates low led to across the board gains in the major indexes. These overshadowed the continuing debt crisis in Europe, Britain’s officially entering recession with a quarterly decline in GDP, Spain’s credit rating being reduced, and a slowing in U.S. economic growth to 2.2% from 3% the previous quarter. The SPX ended the week up 24.83 points or up 1.80% at 1,403.36. The Dow Jones Industrial Average closed at 13,228.31 – up 199.05 points or + 1.53% The Russell 2000 (RUT) closed at 824.79, a gain of 22.44 points – up 2.80%. The NASDAQ 100 (NDX) reflected strong upward moves by Apple and Amazon. The NDX gained 65.30 or 2.44% to close at 2,741.34 The VIX reflected the sideways move by closing at 17.44% – a loss of 10.79%.
Here is a capsule view of last week’s market behavior:
|Index||Close||Weekly Change||% Weekly||% YTD||Volatility of Index|
|Dow Jones Industrials (DJIA)||13,228.31||199.05||1.53%||8.27%||14.74% (VXD)|
|S&P 500 (SPX)||1,403.36||24.83||1.80%||11.59%||16.32% (VIX)|
|NASDAQ 100 (NDX)||2,741.34||65.30||2.44%||20.35%||17.52% (VXN)|
|Russell 2000 (RUT)||824.79||22.44||2.80%||11.32%||22.35% (RVX)|
|CBOE Volatility Index (VIX)||16.32||-1.12||-6.42%||NA|
The coming week will be heavy on news which can move the market. Earnings announcements will start to tail off on Thursday. Spain and France will have debt auctions on Thursday. Economic announcements will focus on jobs. The focus will be on Friday’s April Jobs Report. Any downside jobs surprise will force the markets lower. The ECB (European Central Bank) announcement on Thursday will be watched very closely. Special emphasis will be placed on any comments about the future of the continent’s economy by ECB President Mario Draghi. Be nimble, be careful, be disciplined, and to not allow yourself to be caught unawares.
“Chance favors the Prepared Mind.” – Louis Pasteur
This week’s economic news (All times are Eastern Time. Dates and times are subject to change):
Monday April 30:
Economic: Economic: Personal Income and Outlays – 8:30, Chicago PMI – 9:45, Housing Vacancies – 10:00, Dallas Fed Manufacturing Survey – 10:30, Farm Prices – 3:00.
Earnings : BMO: Armstrong World Industries (AWI0, Corn Products (CPO), Harman International (HAR), Holly Energy (HEP), Humana (HUM), Loews (L), Mercury General (MCY, Sohu.com (SOHU), Tenneco (TEN), Watson Pharmaceuticals(WPI); AMC: Andarko Petroleum (APC), General Cable (BGC), Sourcefire (FIRE), Flowserve (FLS), FMC (FMC), Jacobs Engineering (JEC), Luminex (LMNX), McKesson (MCK), Suncor (SU), VIVUS (VVUS).
Other: Dallas Federal Reserve Bank Pres. Richard Fisher participates in a Panel discussion at the 2012 Milken Institute Global Conference – 5:30.
Tuesday May 1:
Economic: Motor Vehicle Sales, ICSC-Goldman Sachs Weekly Retail Store Sales – 7:45, Redbook – 8:55, ISM Manufacturing Index – 10:00, Construction Spending -10:00.
Earnings: BMO: Archer-Daniels-Midland (ADM), Automatic Data Processing (ADP), Arrow Electronics (ARW), Avon Products (AVP), Becton Dickinson (BDX), Biogen Idec (BIIB), BP (BP), Dominos Pizza (DPZ), Ecolab (ECL), Emerson Electric (EMR), FirstEnergy (FE), Harris Corp (HRS), Marsh & McLennan (MMC), Marathon Petroleum (MPC), PF Chang’s (PFCB), Pfizer (PFE), ProLogis (PLD), Techne (TECH), Teleflex (TFX), TRW Automotive (TRW), Valero Energy (VLO), Wisconsin Energy (WEC): AMC: Bi-Rad Laboratories (BIO), CBOE Holdings (CBOE), CBS (CBS), Cabot Corp. (CBT), Catalyst Health (CHSI), Chesapeake Energy (CHK), Curtiss-Wright (CW), DaVita (DVA), Jazz Pharmaceuticals (JAZZ), Motorola Mobility (MMI), Open Table (OPEN), Peet’s Coffee & Tea (PEET), Papa John’s (PZZA), Ralcorp (RAH), Sturm Ruger (RGR). .
Other: Richmond Federal Reserve Bank Pres. Jeffrey Lacker speaks at the Bloomberg Washington Summit, San Francisco Federal Reserve Bank Pres. John Williams will speak to the Milken Institute 2012 Global Conference – 11:00, Chicago Federal Reserve Pres. Charles Evans and Atlanta Fed Pres. Dennis Lockhart participate on a panel discussion on “The Limits of U.S. Monetary Policy” at the Milken Institute 2012 Global Conference – 12:30 , Philadelphia Federal Reserve Pres. Charles Plosser speaks to the CFA Society of San Diego on the economic outlook – 2:00.
Wednesday May 2:
Economic: MBA Purchase Applications – 7:00, Challenger Job Cut Report – 7:30, ADP Employment Report – 8:15, Treasury Refunding – 9:00, Factory Orders – 10:00, EIA Petroleum Status Report – 10:30.
Earnings: Barrick Gold – (ABX), Allergan (AGN), Amerigroup (AGP), Franklin Resources (BEN), Clorox (CLX), Comcast (CMCSA), CVS Caremark (CVS), Devon Energy (DVN), Garmin (GRMN), Intercontinental Exchange (ICE), Mastercard (MA), MSCI (MSCI), SPX (SPX), Time Warner (TWX); AMC: Allstate ALL), Acme Packet (APKT), Concur Technologies (CNQR), Covance (CVD), Concho Resources (CXO), Gulfmark Offshore (GLF), Green Mountain Coffee Roasters (GMCR), Murphy Oil (MUR), Prudential Financial (PRU), Pioneer Natural Resource (PXD), Transocean (RIG), Boston Beer (SAM), Sunoco (SUN), Visa (V), Whole Foods (WFM), Zillow (Z).
Other: Federal Reserve Gov. Daniel Tarullo speaks to the Council on Foreign Relations, in New York, and will answer questions from the audience – 8:00, Richmond Federal Reserve Bank Pres. Jeffrey Lacker speaks to the Economics Club of Hampton Roads Economic Conference on the “Economic Outlook, May 2012″ – 12:30.
Thursday May 3:
Economic: Jobless Claims – 8:30, Q1 Productivity – 8:30, Bloomberg Consumer Confidence Index – 9:45, ISM non-Manufacturing Index- 10:00, EIA Natural Gas Status Report – 10:30.
Earnings: BMO: American Tower (AMT), Apache (APA), Airgas (ARG), Beam (BEAM), Cardinal Health (CAH), CIGNA (CI), Hyatt Hotels (H), Gartner (IT), Lear (LEA), Elizabeth Arden (RDEN), Royal Gold (RGLD), Sara Lee (SLE), Viacom (VIA); AMC: American International Group (AIG), Air Methods (AIRM), CF Industries (CF), Dolby Labs (DLB), Dresser-Rand (DRC), Fluor (FLR), HeartWare (HTWR), Kraft Foods (KFT), Linkedin (LNKD), Mohawk (MHK), MicroStrategy (MSTR), Public Storage (PSA).
Other: European Central Bank Announcement – 8:30, Federal Reserve Bank Presidents Charles Plosser — Philadelphia, Dennis Lockhart — Atlanta and John Williams — San Francisco are among the presenters at the University of California at Santa Barbara Economic Forecast Project 2012. Japanese Markets closed.
Friday May 4:
Economic: Monster Employment Index, April Non-Farm Payrolls, April Unemployment Rate – 8:30.
Earnings: BMO: Estee Lauder (EL), Exelon (EXC), ITT (ITT), Madison Square Garden (MSG), Northwest Natural Gas (NWN), US Cellular (USM).
Other: Japanese Markets closed.
Monday May 7:
Economic: Consumer Credit – 3:00
Earnings: BroadSoft (BSFT), Cinemark (CNK), Echostar (DISH); AMC: Churchill Downs (CHDN), Dun & Bradstreet (DNB), Backspace Hosting (RAX), Salix Pharmaceuticals (SLXP), Tesoro (TSSL).
Other: Runoff election for French President. Greek Parliamentary elections.