Wall Street Week Ahead: attention turns to financial gains
NEW YORK – After more than a month to watch Capitol Hill and Pennsylvania Avenue, Wall Street is back to what he knows best: Wall Street.
first full week of earnings season is dominated by the financial sector – investment banks and commercial banks – as well as retail investors, free of “cliffs” financial worries began to return markets Stocks
increased during the new year, rallying after the initial resolution of the fiscal cliff Washington January 2. The S & P 500 on Friday closed its second consecutive week of gains, leaving only very slightly off a coup five years closing high on Thursday.
array of financial companies – including Goldman Sachs and JPMorgan Chase – will report on Wednesday. Bank of America and Citigroup will join Thursday.
“Banks have a read on the economy, consumer health, the health of the application,” said Quincy Krosby, strategist at Prudential Financial in Newark, New Jersey.“What we want is demand. The demand for small business owners, consumers. “ ECONOMIC BENEFITS AND EXPECTATIONS
investors were greeted with a week a little better than expected first benefit, but expectations were low and some companies have reported results.
Fourth quarter earnings and revenue for S & P 500 are both expected to have risen 1.9 percent last quarter, according to Thomson Reuters I / B / E / S.
Few large companies reported with Wells Fargo bank first out the door on Friday, posting record earnings. however, the bank makes mortgage unless in the third quarter and its shares fell 0.8 percent for the day.KBW bank index
<. BKX>, a gauge of U.S. bank stocks, an increase of about 30 percent of a low blow in June, rising in six of the past eight months, including January.
investors continue to monitor the results of Friday as General Electric complement the week According to the report from Intel on Thursday.
HOUSING, INDUSTRIAL DATA ON TAP
next week will also release a wide range of economic data.
Tuesday will see the release of retail sales figures and the Empire State index of manufacturing, followed by CPI data on Wednesday.
investors and analysts will also focus on Starts and numbers from the Philadelphia Federal Reserve index of factory activity, Thursday. Thomson Reuters / University of Michigan Consumer Sentiment numbers are due on Friday.Jim Paulsen
, Director of investments at Wells Capital Management in Minneapolis, said he expected to see the number of homes continue to rise.
“They will not wonder if they are good, they are rather catchy if they are not well, “he said.” Training underlying markets, I think, are economic data. This was the catalyst. “ANXIETY
Concerns about fiscal cliff protracted negotiations led markets in the weeks before the ultimate resolution of January 2, but the fear the debt ceiling fight has not yet investors ‘attention control’ to the same extent.
The agreement was probably part of the reason for bounce flows to stocks. The U.S. equity-based mutual won $ 7.53 billion after the resolution of the cliff in the week ending January 9th most in a week since May 01, according to Thomson Reuters Lipper.Markets
are unlikely to move on the new debt ceiling unless lawmakers take a prominent position signal that surprising in the debate.
The Washington Agreement to avoid the cliff set up another battle of the debt, which will play out in the coming months alongside discussions expenses. But the alarm has been triggered before.
“The market will turn the corner on it when debate heats up, “said Prudential Financial Krosby.
The CBOE volatility index <. vix> gauge concern traders, is off more than 25 percent this month and recently hit its lowest level since June 07, before the start of the recession.
“The market does not react to the same news twice. It should be more brutal than the fiscal cliff, “said Krosby.” The market has been conditioned that in the end, they come to an agreement. “