Market Insider: The Week Ahead
Big-Time Earnings on the Way
There is little data on the calendar. On Monday, leading indicators for September are reported. Weekly jobless claims are reported Thursday, and existing home sales for September are reported Friday. Weekly oil inventories will be reported Wednesday morning.
Treasury Secretary Hank Paulson is scheduled to speak at the National Committee on U.S.-China Relations Tuesday.
Oil rose on Friday to $71.85 per barrel, but it was down 7.5 per cent for the week, a move that certainly has given OPEC some concern. The Organization of Petroleum Exporting Countries called an emergency meeting for Friday to discuss production cuts.
"I'm fully expecting a production cut upwards of a million barrels, if not more," said John Kilduff, senior vice president at M.F. Global. "They're going to react aggressively to this. The key to it though is Saudi Arabia."
"The Saudis don't want to do it, but in the interest in keeping some modicum of cohesion, they're' going to do it," said Kilduff, a CNBC contributor. "...If they cut and Kuwait cuts, pretty much the cut will be affective and implemented."
Kilduff said he expects crude prices to stay in the $75 to $76 per barrel range with an upper band of $80. "At least with this first cut, you won't see the cheating that bedeviled the cartel in the old days," he said.
On Monday, American Express and Texas Instruments report earnings. Caterpillar, Coach, Dupont, 3M, Pfizer, BlackRock and State Street report before the bell Tuesday. Apple and Yahoo report after the bell that day. (See more coming earnings below.)
On Wednesday, AT&T, Boeing, Conoco, McDonald's, Merck, and Philip Morris report Wednesday morning and Amazon, Amgen, Pulte Homes and Sallie Mae report after the bell that day.
Altria, UPS, Bristol Myers, and Union Pacific report Thursday morning. Microsoft, Burlington Northern, Aflac and Chubb report after the close Thursday. On Friday, Ericsson reports ahead of the open.