Coming Week: Eye of the Storm?
03/29/08 - 09:15 AM EDT
Nat Worden
On Tuesday, auto makers like General Motors (GM Quote - Cramer on GM - Stock Picks), Ford (F Quote - Cramer on F - Stock Picks) and Toyota (TM Quote - Cramer on TM - Stock Picks) will report their U.S. auto sales for March. Auto sales have showed a sharp drop-off in recent months.
Also, economists are expecting the government to report that construction spending fell by 0.9% in February and the Institute for Supply Management to report that its manufacturing index ticked down to 48.2 in March from 48.3 in February, indicating continued contraction. Then on Wednesday, the government is expected to report that factory orders dropped by 0.7% in February, and on Thursday, the Institute for Supply Management is expected to report that its index gauging economic activity in the services sector fell to 49.2 in March from 49.3. On the front lines of the consumer spending front, retailers will report their same-store sales results for March on Thursday with giant chains like Wal-Mart (WMT Quote - Cramer on WMT - Stock Picks) and Target (TGT Quote - Cramer on TGT - Stock Picks) providing their own update on economic conditions. In a foreboding sign, J.C. Penney (JCP Quote - Cramer on JCP - Stock Picks) lowered its forecast for first-quarter earnings on Friday to 50 cents a share, down from its prior forecast for a profit of 75 cents to 80 cents a share. CEO Myron Ullman pinned the big miss on economic woes. Meanwhile, the Fed continues to bail out the life raft, and investors will be keeping a close eye on the central bank's activity to see if it can return to its traditional role. On Friday, it announced it will it will auction off another $100 billion in April to cash-strapped banks as it continues to combat the effects of a credit crisis. "We do know that the Fed is ready and willing to be as generous as it needs to be, and that helps," says Kasriel. |
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