NEW YORK (
) -- The market
Monday from the rampant bearishness that's pervaded Wall Street for the past month as apparently salvation lies in
The push vaulted the
Dow Jones Industrial Average
back above 12,000 again after a two-day hiatus, and the blue-chip index has now moved higher in three of the past four sessions. It's too early (and there's still too much data ahead) to say the Dow's six-week losing streak is in serious jeopardy, but the setup is certainly there.
Wednesday brings a plethora of data, headlined by the consumer price index for May at 8:30 a.m. ET, and expectations are for tame 0.2% increase, slightly than the 0.4% rise in April. The core number, which excludes food and energy (and is often mocked for this reason), is also projected to be a 0.2% bump higher. Ian Shepherdson, chief U.S. economist at High Frequency Economics, expects the headline CPI to be held down by falling gas prices but sees the core rising again because of rents.
"The key driver of the upshift in core inflation from its 0.6% October low to 1.3% in April has been rents, which account for nearly 40% of the index," Shepherdson said in a research note. "The year-over-year rate of increase of owner-equivalent rents has swung from a low of -0.3% in August last year to +0.9% in April."
The other key report, according to Shepherdson, is industrial production for May at 9:15 a.m. ET, and he expects output to rise 0.6% with capacity use rising to 77.4% from 76.4% vs. consensus expectations of 0.2% and 77% respectively, according to
"The May industrial production numbers should help steady market nerves after the very disappointing April report," Shepherdson wrote.
The other datapoints due Wednesday include the Empire State Manufacturing survey at 8:30 a.m. ET, MBA's mortgage applications data for last week at 7:00 a.m. ET, the National Association of Home Builders Housing Market Index at 10:00 a.m. ET, along with crude inventories for last week at 10:30 a.m. ET.
Morning chatter will likely center around
, which will make its public debut on the New York Stock Exchange on Wednesday with the ticker symbol "P." The Internet radio company saw
on Tuesday, pricing an offering of 14.7 million shares at $16 each, and raising roughly $235 million.
The company, which is still a loss maker, had started out with a range of $7-$9 per share, then upped it to $10-$12 per share on Friday while also increasing the size of the sale by another million shares.
The earnings calendar features
after the closing bell. The Sunnyvale, Calif.-based maker of optical networking equipment is expected to post a profit of 33 cents a share in its fiscal fourth quarter ended in April on revenue of $242.8 million.
Wall Street is leaning bullish on the stock ahead of the report with seven of the 11 analysts covering the shares at strong buy (3) or buy (4), and a 12-month median price target of $32.50. At Tuesday's regular session closing price of $19.20, the volatile shares are up 21% in the past year but down 39% since the start of 2011.
Finisar has beaten the average analysts' earnings view in seven of the past eight quarters but expectations have likely come down since
rough report on June 8. Other companies that could see heavy trading dependent on Finisar's report include
Miller Tabak previewed Finisar's quarter last week before the Ciena news, saying it expects an in-line performance. The firm is a big bull on Finisar with a buy rating and a $60 price target, designating the stock as its "single best idea." Still, it doesn't see the stock making a real run higher just yet.
"July outlook likely still tepid as China orders have not rebounded yet even as Huawei is seeing increased demand," Miller Tabak said. "Coming off the trough quarter for the inventory correction and the seasonally slowest quarter of the year, Finisar should be able to offer up Q-Q guidance even if it's still not a robust recovery."
The firm notes the guidance will be the determining factor in how the shares trade on Wednesday.
"Stock is likely at its trough and should rebound as we move into 2H, though the April quarter release is not likely to resolve the uncertainty," Miller Tabak said.
News late Tuesday included
an executive shakeup
, which weighed on the stock in the
Written by Michael Baron in New York.
>To contact the writer of this article, click here:
>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.