Sunday, August 07, 2005

Weekly Outlook

There are several important economic reports and some significant corporate earnings reports scheduled for release this week.

Economic reports for the week include:

Mon. - None of note
Tues. - Preliminary 2Q Non-farm Productivity, Preliminary 2Q Unit Labor Costs, Wholesale Inventories, FOMC Rate Decision
Wed. - Monthly Budget Statement
Thur. - Advance Retail Sales, Initial Jobless Claims, Business Inventories
Fri. - Trade Balance, Import Price Index, Univ. of Mich. Consumer Confidence

A few of the more noteworthy companies that release quarterly earnings this week are:

Mon. - None of note
Tues. - Cisco Systems(CSCO), Clear Channel Communications(CCU), EchoStar Communications(DISH), May Department Stores(MAY), Polo Ralph Lauren(RL), Walt Disney(DIS)
Wed. - Abercrombie & Fitch(ANF), Federated Department Stores(FD)
Thur. -Analog Devices(ADI), Dell Inc.(DELL), Kohl’s Corp.(KSS), Nvidia(NVDA), Urban Outfitters(URBN)
Fri. - Target Corp.(TGT)

Other events that have market-moving potential this week include:

Mon. - Pacific Crest Tech Forum
Tue. - Pacific Crest Tech Forum, Thomas Weisel Telecommunications Connference
Wed. - CIBC Enterprise Software Conference
Thur. - CIBC Enterprise Software Conference
Fri. - None of note

BOTTOM LINE: I expect US stocks to finish the week mixed-to-lower as more hawkish comments from the Fed and worries over high energy prices more than offset economic optimism. I continue to believe we are in a consolidation phase within a significant intermediate-term move higher in the major averages. My trading indicators are still giving bullish signals and the Portfolio is 50% net long heading into the week.

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