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Michael Kors, Dish and Molson Coors Earnings Preview

NEW YORK ( TheStreet) -- Today I profile eight companies that report quarterly earnings premarket on Tuesday. These companies provide quite a mix of products and services; agricultural processing, a major pharmacy, a satellite TV provider, two high end retailers of watches, handbags and footwear, a supplier of building materials, a brewery, and a fleet provider for offshore energy platforms. The performances of these stocks represent a diverse view of the U.S. economy.

Last week we learned that economic growth remained well below par in the second quarter. We saw that consumer confidence could be stalling below normal readings. A report on home prices showed that the housing bubble may be re-inflating as home ownership falls to a 17.5-year low. The payroll data for July was weaker than expected and the unemployment rate fell to 7.4% only because more discouraged workers stopped looking for a job. The economy is creating more part time jobs and the number of part time workers rose to 28 million.

Stock market bulls call this mix positive as the FOMC pledged to keep the federal funds rate at 0% with the continued QE purchases at $85 billion per month.

The ValuEngine valuation warning continues with 76.8% of all stocks overvalued including 44.6% by 20% or more. 15 of 16 sectors are overvalued, 14 by double-digit percentages with 10 by more than 20%.

Market technicals remain positive but some weekly charts are becoming overbought. Since there are no signals calling for a market top, new highs continue. This was the case last week with new all-time highs set on Thursday for Dow transports at 6686.86 and on the Russell 2000 at 1060.96. On Friday the Dow industrial average set a new all time high at 15,658.43, as did the S&P 500 at 1709.67. The Nasdaq set a multi-year high on Friday at 3689.59.

This sets the stage for Tuesday's premarket earnings reports. Among the eight stocks, three have buy ratings, three have hold ratings and two have sell ratings. Only one stock is undervalued, and three are overvalued by more than 20%. All had significant price gains over the last 12 months by 23.5% to 73.8%. Only one stock is below its 200-day simple moving average. The risk of a reversion to the mean is thus a risk for seven.

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