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

Banks and Tech the Focus in Coming Week

Updated from 01/16/10

Update includes news that Kraft is close to sealing a takeover deal with Cadbury.

NEW YORK ( TheStreet) -- Market watchers will begin next week much how they ended the last: with an intensive focus on banking and technology company earnings.

Each of the major averages lost ground last week. The Dow shed almost 0.1%, while the S&P 500 declined by 0.8% and the Nasdaq tumbled 1.3%.

U.S. markets will be closed Monday in observance of Dr. Martin Luther King Jr. Day. But a full slate of quarterly reports will be coming the rest of the week.

> > Bull or Bear? Vote in Our Poll

Both large and regional financial sector players are set to report, including Citigroup (C - Get Report), Bank of America (BAC - Get Report), Wells Fargo (WFC - Get Report), State Street (STT), U.S. Bancorp (USB), Huntington Bancshares (HBAN), BB&T (BBT), Morgan Stanley (MS) and Goldman Sachs (GS).

The past week was not a kind one for the banks. To wit, the CEOs of four major institutions were grilled by the Financial Crisis Inquiry Commission last Wednesday. By Thursday, President Obama announced plans to tax the biggest banks in an effort to recoup costs associated with $700 billion bailout package. And that news came amid increasing frustration on Main Street over increasing banker bonuses.

By the end of last week, JPMorgan Chase (JPM) announced that it beat profit forecasts. But the Dow tumbled 101 points, or 1%, to finish at 10,610 on Friday amid some murkier signs that weighed on the banking sector.

Michael Pento, chief economist at Delta Global Advisors, says he'll be looking closely next week to see whether the banking sector's first major report is indicative of a trend.

"Let's look at JPMorgan. They beat on the bottom line but their revenue number stunk," Pento says. "So, can we continue to burn our furniture to keep the house warm? Eventually, the top-line revenue has to increase. Sales have to increase or we're going to see a market decrease in the earnings power of our corporations."

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
C $53.07 0.00%
BAC $15.56 0.00%
EBAY $55.79 0.00%
GE $27.25 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs