Linkfest: The Week Ahead
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Yesterday, we looked at the week that was. Today, we preview the coming week.
It's a relatively light week for economic data, and things will be pretty quiet until Wednesday, when we get mortgage purchase applications and existing-home sales. Expectations are modest for each. On Thursday, we will see durable goods orders and new-home sales; both are expected to be soft.
Last week saw a surprisingly large rise in weekly jobless claims. We'll be watching this data release Thursday morning to see if last week's jump was an aberration or something worthy of more concern. Friday will bring the University of Michigan's Consumer Sentiment Index.An avalanche of earnings reports is coming this week, including half a dozen Dow industrials components. On Monday, Apple (AAPL) kicks us off; expectations are high for the company's iPods and Macs. Texas Instruments (TXN) also reports Monday, along with drugmakers Merck (MRK) and Schering-Plough (SGP). Bristol-Myers Squibb (BMY) reports later in the week. Amazon.com (AMZN) is out on Tuesday. Merrill Lynch (MER) reports Wednesday, and Microsoft (MSFT) is on Thursday's roster. We'll hear from quite a few housing firms. On Tuesday, Centex (CTX) reports, followed Wednesday by Pulte Homes (PHM) and Ryland (RYL). Countrywide Financial (CFC) is expected to report a big loss Friday. Its CEO, Angelo Mozilo, is under increased scrutiny for his sales of company stock. Lots of aerospace and defense names report this week: Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), Northrop Grumman (NOC), Raytheon (RTN) and L-3 Communications (LLL). A few transports also release earnings. The world's largest package carrier, UPS (UPS), reports Tuesday, along with Burlington Northern Santa Fe (BNI), UAL (UAUA) and JetBlue Airways (JBLU). Norfolk Southern (NSC) reports Wednesday. US Airways (LCC) is due out Thursday. Boeing, Merck and Microsoft are components of the Dow industrials. Others reporting this week include American Express (AXP), AT&T (T) and DuPont (DD). It's Sunday morning, and I am heading to the North Fork's wine country -- no time to dawdle! Let's get clicking:
INVESTING & TRADING ¿ S&P 500 earnings likely to turn negative: Thomson Financial: "Third-quarter earnings of S&P 500 companies have 'a good chance' of turning negative for the first time in five years on Thursday, after factoring in Wednesday's profit warnings from a slew of energy stocks, Thomson Financial said." (MarketWatch) ¿ Clean technologies propel venture capital funding: "Shrugging off credit-related economic woes, venture capitalists bet heavily on new companies in the third quarter, driven by opportunities in clean technologies, software and biotechnology." (Seattle Times) ¿ Wall Street Requiem: "The big investment banks, loaded with dangerous amounts of debt, are facing their own version of a subprime slump. Can they all survive?" (Portfolio) ¿ Via our pal Paul Kedrosky comes this piece from Pensions & Investments: Institutional investors will spend a projected $1.1 billion on research technology globally by 2010. ¿ Are oil prices at their highest?: "Pinpointing the all-time inflation-adjusted record for oil prices is nowhere near as exact as it might seem." (Houston Chronicle) ¿ Gold and Stocks Have Been Holding Hands. Why?: "The bull market in stocks is more than five years old. Surprisingly, the bull market in gold has been running even longer. A new study shows just how unusual it is for these two types of asset classes to perform this well together for this long." (The New York Times) ¿ My keynote speech at the Forex trade show in Las Vegas is now online. ¿ Dollar May Extend Drop After G-7 Fails to Address Record Slide: "The dollar, trading at an all-time low against its major trading partners, may extend the decline after the Group of Seven failed to address the drop following a meeting of finance officials." (Bloomberg)That's all. It has been another gorgeous fall weekend -- talk about an endless summer! Got a comment, suggestion, link idea? Or do you just have something on your mind? The Linkfest loves to get email! If you've got something to say, then by all means, please do.
ECONOMY The wall of worry continues to build: ¿ A few weeks ago, I mentioned how much inflation China was exporting. Time has caught on: China's Next Big Export: Inflation. ¿ Treasury Sales May Rise 50% as Deficit Suddenly Grows: "Government auctions of bills, notes and bonds in the fiscal year that started this month may rise more than 50 percent to $220 billion, according to UBS Securities LLC, one of the 21 primary dealers that underwrite Treasury auctions. The first decline in corporate tax revenue since 2003 increased the shortfall by 12 percent to $162.8 billion for the year ended in September, from $144.8 billion in the 12 months through April." (Bloomberg) ¿ Stephen Roach: Is this any way to run a modern-day world economy? ¿ IMF Warns of Inflation Risks: "Global economic leaders warned of inflation risks in advanced countries on the eve of the first World Bank meetings since Robert Zoellick took charge of an institution shaken by internal divisions and scandal. The International Monetary Fund's policy-setting committee on Saturday noted rising food and oil prices and other indications of inflation in urging finance ministers and central bankers to stay focused on achieving price stability as well as on smoothing global financial market turbulence." (Associated Press)
HOUSING ¿ Burned by Real Estate, Some Just Walk Away: "A growing number of investors like Mr. Rozzen are making the drastic decision to walk away from their properties and ultimately send their homes into foreclosure, lenders and real-estate agents say. Many investors who were hoping to quickly flip their investments are now left with homes that can no longer be sold for more than the mortgage debt. In many cases, these investors can't even find tenants willing to pay enough rent to cover hefty mortgages." (free in The Wall Street Journal) ¿ Property Worsens: Beginning, Middle or End?
TECHNOLOGY & SCIENCE ¿ "Undercover Economist" column: Did you pay to read this? (FT) ¿ Blue Orchard Bees Find Favor in Colony Collapse Disorder Peril: "Rosalind James steps into a Styrofoam shelter surrounded by thousands of wild bees. Dozens buzz past the entomologist as she examines blocks that contain 3,540 holes for solitary bees. 'Bee condos,' she says. The smattering of stings she's sustained is a small sacrifice for work that may save a $75 billion-a-year slice of the U.S. economy. James leads a U.S. Department of Agriculture team in Logan, Utah, that is fighting fallout from Colony Collapse Disorder. The malady has killed at least 2 billion honeybees that pollinate crops from almonds to zucchini. As entomologists try to solve the mystery, scientists at Logan are teaching anti-social, wild bees to imitate commercially maintained honeybees and pollinate crops." (Bloomberg) ¿ Hollywood Ending: Whatever became of the Hollywood Stock Exchange? (Trader) ¿ Apple thinks differently about iPhone: After months of barring third-party developers from working on the iPhone, Apple CEO Steve Jobs is rolling out the welcome mat." (CNET)
MUSIC BOOKS MOVIES TV FUN! ¿ Robert Plant and Alison Krauss team up: "When Robert Plant and Alison Krauss chose each other as musical partners for their unlikely new tandem album, 'Raising Sand,' they knew precisely what drew them close. 'Alison's voice has this fragility, this beautiful condition,' Plant says. 'I often thought, "How does a voice like this exist in the world? How does she maintain that serenity?"' Krauss had less ethereal feelings about Plant's instrument. 'It's the kind of singing that makes me feel like my heart and lungs are going to be ripped out,' she says. 'There's so much going on. There's a thousand stories.' ¿ Steve Carell in 'Real Life.'
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