It's Show Me Time With Earnings, Apple Reports Tuesday

Traders can finally shift focus from macro headlines in Greece and China as earnings are in full swing with hundreds of companies expected to report quarterly results. News flow has been predicated on overseas uncertainty, so earnings will be a welcome change as headlines will be more stock driven. The economic data calendar is relatively light with the following reports in focus: FHFA Housing Index, New and Existing Home Sales, Leading Indicators, Chicago and Kansas City Manufacturing, PMI and Jobless Claims. Mike Khouw and Jill Malandrino of TheStreet’s Action Alerts OPTIONS review six key stocks to watch in the trading week that are held in the Action Alerts PLUS portfolio and reporting earnings. Morgan Stanley (MS) is well positioned going into earnings on Monday and one of the most stable in the sector, especially as the market rallies due to assets under management and fee generation. All eyes will be on Apple (AAPL) earnings due out Tuesday, and while the iWatch is a hot topic, mobile numbers are what moves the needle. Diagnostic company Thermo Fisher Scientific (TMO) reports on Wednesday. Thursday will be a busy day for the portfolio as three names report including General Motors (GM), Dow Chemical (DOW) and 3M (MMM). GM hit another low this past week, but the options market indicates longer-term bullish flow in the January 2016 contracts among institutional players. No major surprises are expected out of DOW, with about a 3-4% implied move following the print based on options pricing. Finally, industrial conglomerate MMM has been a company that historically performs, but valuation may be a bit stretched at this level. That said, Khouw believes this is a solid long-term position as a 3-5% grower over the next decade.