Updated to include news of Basel Committee's adoption of new bank capital standards and a report that HP is close to acquiring ArcSight.
NEW YORK (TheStreet) -- A mixture of economic data, the first trickle of the upcoming earnings season and a continued buildup of political dialogue ahead of the November elections will garner Wall Street's attention in the coming week.
On the back of a series of recent economic data that helped ease investor concerns about the state of the U.S. economy, market watchers will turn their attention east toward China early next week, Jeffrey Kleintop, chief market strategist for LPL Financial, told TheStreet.
China is expected to announce additional tightening of its monetary policy. Global equity markets took note after China's previous monetary announcements in January and April, Kleintop said. If China further tightens its policies as expected, it would indicate the country views its current pace of slowdown as insufficient and in need of more aggressive action by its policy makers."All eyes will be on the People's Bank of China, and its announcement could have global ramifications," he said, adding that "the equity markets have not yet priced in that scenario." A roster of U.S. domestic data is also expected to be released, as well as the first wave of pre-announcements ahead of third-quarter earnings season. While it's impossible to predict which companies will offer glimpses of their upcoming earnings reports, a number of blue chips are likely to reset investor expectations, according to Lawrence Creatura, portfolio manager at Federated Investors, especially because so many management teams' latest communications to investors were of the "don't worry, we'll make it up in the second half" variety. Alcoa (AA) could offer an updated forecast, Creatura speculated, because the aluminum miner is typically the first Dow Jones Industrial Average component to report its quarterly results. Investors may hear from firms in the semiconductor space as well after chipmakers Texas Instruments (TXN) and National Semiconductor (NSM) lowered their quarterly outlooks last week, citing a slowing demand for PCs. The pair's revised guidance followed a similar revision from Intel (INTC) late last month. "You can see what's happening here between Intel, National Semiconductor and TI's report: demand has peaked and is starting to head down," Charter Equity Research analyst Ed Snyder told Reuters. There may be some disappointments, Kleintop said, because the quarter has been relatively weak compared with initial expectations. Elsewhere in earnings, several big-name firms are due to report quarterly results in the coming week, namely Best Buy (BBY), FedEx (FDX), Oracle (ORCL) and Research In Motion (RIMM). > > Bull or Bear? Vote in Our Poll
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV