On the docket for the week ahead.
Tuesday: Earnings will continue with Walmart (WMT). They are expected to have earned .99 compared to $1.04 a year ago. They are set to report before the bell so they might help to set the tone for Wall Street.
Wednesday: The Housing Market reports are due before the start of trade. January housing starts are expected to have fallen to a 530,000 annual unit rate from a 550,000 rate in December. I personally don’t expect to see a bottom in this housing mess until late fall at the earliest.
Our Federal Reserve Chairman Ben Bernanke will speak at 1:00 p.m. ET at the National Press Club in Washington, about the Fed’s lending programs and balance sheet. This might also shake up the markets if there is any surprises brought up.
Mr. Obama is due to announce the home loan modification plan during the day Wednesday. A market mover for sure.
Also Hewlett-Packard (HPQ) will report earnings after the bell.
Thursday:The Producer Price Index (PPI) is due before the Bell. The measure of wholesale inflation is expected to have risen 0.2% in January after falling 1.9% in December. The weekly jobless claims report is also due before the start of trade. They are expecting to see the number come in a bit lower than last weeks 26 year high levels.
Also on the agenda for Thursday, the European Central Bank meets to discuss interest rates.
General Motors (GM) will be reporting before the bell. These numbers can’t be good!!!
Friday: JC Penney (JCP) and Lowes Corp (LOW) are set to report before the bell so this might also help set the tone for Friday.
What I’ll be watching very closely is support on the Dow at 7850 and on the Standard & Poor’s 500 the 805 level. A drop below those levels erases the bullish short-term argument and keeps things as murky as they have ever been. If we drop below the 805 I don’t think we stop until 750 short term.
