Week Ahead: Earnings May Once More Rule the Stock Market
"I think the market is booking some profits because we bought so much of the rumors about the Fed," he said. Ader said a big question for investors is how much easing the bond market has priced in. "Have we priced in $500 billion or $600 billion? Probably not."
Ader said he expects the Fed's beige book on economic activity, released Wednesday, to affirm the need for quantitative easing. There is also industrial production and the National Association of home Builders survey Monday. On that day, the Treasury also releases its report on international capital flows. Weekly jobless claims, the Philadelphia Fed survey and leading indicators are released Thursday.
But Ader said he'll be watching the parade of Fed speakers. "Lockhart, Kocherlakota, Duke Dudley, Evans Plosser. You've got a few Fed guys out there," he said.
"I think they're going to open up to some degree the debate that they are going to be having internally so it will a sort of be an airing of their grievances...clearly some people on the Fed are more in favor of it than others," he said.
"We're gong to hear from the hawks but we're also going to hear from some leading doves, and we heard today from the greatest dove in the nest, Bernanke," he said. Friday afternoon.
Fed speakers include Atlanta Fed President Dennis Lockhart, who speaks on the economy Monday. Chicago Fed President Charles Evans; New York Fed President William Dudley; Dallas Fed President Richard Fisher; Fed Governor Elizabeth Duke and Minneapolis Fed President Narayana Kocherlakota all speak on Tuesday. Philadelphia Fed President Charles Plosser and Richmond Fed President Jeffrey Lacker speak Wednesday. Kansas City fed President Thomas Hoenig and St. Louis Fed President James Bullard speak Thursday and Plosser is speaking again on Friday.
Apple, juiced up this past week on strong i-Pad sales and the promise of new products, reports earnings after Monday's bell. Apple, up 7 percent for the week, also will unveil a new Mac operating system Wednesday.
Other companies reporting earnings Monday include Citigroup, Halliburton, Hasbro and PhillipsElectronics. IBM reports after the close.
On Tuesday, Goldman Sachs , Bank of America ,Coca-Cola , Johnson and Johnson, Bank of New York Mellon, Occidental Petroleum, Lockheed Martin, United Health and State Street report before the bell. Yahoo, the subject of takeover talk this past week, reports after the close, as does Sallie Mae, Stryker, Boston Scientific and Gilead.
Boeing, Morgan Stanley , United Technologies , BlackRock, Wells Fargo, Genzyme, US Bancorp, St. Jude Medical, US Airways, Eaton and Delta Airlines are among those reporting Wednesday morning. EBay, E*Trade, Kinder Morgan, Netflix, Nobel Energy and Seagate report after the bell that day.
Thursday's reports include AT&T , Caterpillar , Credit Suisse, McDonalds , Travelers, Southwest Airlines, Freeport McMoran, Hershey, Continental Airlines, UPS , Traveler's, Lilly, and Xerox. American Express, Amazon.com , Capital One and Chubb report after the bell. Verizon , Honeywell and Schlumberger report Friday.
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