This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coming Week: Economic Gifts

All traders want in the final week before Christmas are tame inflation data to spark a rally.

"We are seeing a dissipation in tax-loss selling, so as long as the inflation numbers are in line, we could see a small Santa Claus rally before people head home for the holidays," says Larry Wachtel, senior market analyst for Wachovia Securities.

The producer price index for November will be released on Tuesday. According to Thomson First Call, economists predict the PPI will fall 0.4%, reversing the gain of 0.7% in October. The core PPI, which excludes food and energy, however, is expected to rise 0.2%, compared with a drop of 0.3% the prior month.

Larry Perruzzi, equity trader for Boston Company Asset Management, says that since crude prices were down in November, there's a chance that the inflation data will be better than expected. "Nevertheless, even if we get a surprise, it's going to be tough for the Dow to break through 11,000, since it will be a low-volume week," he says.

The Dow Jones Industrial Average has attempted to pierce the 11,000 mark three times but has come up short on each attempt.

Building permits and housing starts for November also will be released Tuesday, and that should fuel discussion about the status of the so-called housing bubble. Building permits for November are expected to drop to 2.08 million from 2.1 million in October, while housing starts are anticipated to remain flat at 2.01 million.

"We do get a lot of housing-related data, [and] that may depress or reinvigorate investors," says Randy Diamond, a sales trader at Miller Tabak. "But if there are no serious surprises, traders will just say, 'See you next year!' So there is a strong likelihood there are just two real trading days left in 2005."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TIBX $24.03 0.00%
FDO $79.39 0.05%
BBY $35.80 0.00%
BBBY $62.50 0.00%
CAG $41.90 0.00%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs