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Market Preview for the week beginning 08/10/09

This week could prove to be a volatile week in trading.  While the stock market has seen good strength in recent weeks, further data will be needed to continue the run.  The Fed will hold a two day meeting on Tuesday and Wednesday with little expectations of any interest rate move.  Though what will be watched closely is the Fed statement regarding the economic stability. 

From an earnings stand-point, the retailers will move to the forefront.  Retailers will release second quarter results and will account for ten percent of the nearly 250 results expected for the week.  The major names that will be examined will include Walmart (WMT), JCPenneys (JCP), Kohls (KSS), and Macy's (M). 

Also for the week, the Treasury Department has plans to offer $75 billion in Notes and Bonds.  This could cause weakness in the stock market if the demand for the Treasury issues wanes.

Upcoming Releases:

Nonfarm Productivity (08/11 at 8:30am EST)
Wholesale Inventories (08/11 at 10am EST)
Trade Balance (08/12 at 8:30am EST)
Treasury Budget (08/12 at 2pm EST)
FOMC Policy Statement (08/12 at 2:15pm EST)

Economic Highlights from the week ending 08/07/09

Aug 7:  The Unemployment Rate for July dropped to 9.4%, better than the expected 9.6%
Aug 6:  Initial Claims decreased by 38,000 to 550,000
Aug 5:  Factory Orders up 0.4%;  ISM Services Index down to 46.4
Aug 4:  Personal Income down 1.3%;  Personal Spending up 0.4%;  Pending Home Sales up 3.6%
Aug 3:  ISM Manufacturing Index increases to 48.9;  Construction Spending up 0.3%

As companies start to see their business stabilize and their stock price rise, acquisitions could become the next trend in many of the industries.  With valuations looking relatively cheap compared to next years earnings and earnings growth, companies will start to make strategic acquisitions.

For further Data and Charts, click the link below: