This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Jobs Data, Egypt Unrest Loom in Coming Week

Updated from 1/29/2011 with latest news from Egypt.

NEW YORK ( TheStreet) -- Should investors be bracing themselves for a further correction in the coming week?

Between the escalating crisis in Egypt, the ongoing earnings season and a crucial nonfarm payrolls report, there will certainly be plenty of market-moving headlines to influence equities trading.

After rising to key psychological levels on an intra-day basis during the week on the back of strong earnings, stocks plunged on Friday as investors worried that tensions in Egypt would spread to other countries in the Middle East, including the major oil-producing nation of Saudi Arabia. Anti-government protests have already spread to Yemen, Algeria and Jordan.

On Saturday, Egyptian President Hosni Mubarak appointed Omar Suleiman, the head of the country's intelligence services, as vice president, according to media reports. As riots and protests continued into Sunday, Egypt's information minister ordered the suspension of operations of Al Jazeera, revoking its licenses and withdrawing accreditation for its staff.

A protester is seen in the streets amid civil unrest in Suez, Egypt, Friday, Jan. 28, 2011. Tens of thousands of anti-government demonstrators poured into the nation's streets.

The Dow Jones Industrial Average snapped its eight-week winning streak, losing 0.4% over the week to close at 11,824. The S&P 500 also failed to hold above 1300, slipping 0.5% over the week to 1276.

Geopolitical tensions instead caused investors to bid up the price of oil by more than 4% to $89.90 a barrel on Friday. Traditional safe havens -- gold, the dollar and treasuries -- also snapped back into favor.

Market experts are debating whether Friday's fall was a mere technical correction after a long, uninterrupted rally or if more weakness is in store.

Lawrence Creatura of Federated Investors believes stocks have been grinding higher on the back of a healthy earnings backdrop, but global concerns could derail the upward trend.

"Share prices have been moving up because we have earned it. The tone of the results reported so far has been largely positive and any pullback will have to overcome that positive tone," he said, adding, "In terms of catalysts for correction, though, there are a lot of candidates outside our borders including Middle East tensions, Chinese inflation and Europe uncertainty."

Peter Cardillo of Avalon Partners believes the Egypt crisis could be a "curveball" for the markets if it spreads to Saudi Arabia.

"The unrest we are seeing in Egypt now, who knows who could be next?," said Cardillo. "We are dealing with countries in the Middle East. The oil-producing countries are at risk. If it should spread to Saudi Arabia or Kuwait, we could see some drastic moves, upward pressure on oil markets on the back of geopolitical tension."

In the United States, investors will have a flood of economic data to digest in addition to a stream of earnings reports.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
APC $81.48 -1.60%
BP $41.30 -1.10%
FRO $2.58 0.19%
XOM $87.13 -0.56%
V $272.79 -0.91%


DOW 18,042.12 -161.25 -0.89%
S&P 500 2,088.55 -19.23 -0.91%
NASDAQ 4,940.1150 -39.7860 -0.80%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs