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Traders Already Eyeing Earnings

Bob Pisani is off today, this post was written by CNBC producer Danielle Kennedy

Stocks drifting today on very light volume. Traders are fast-forwarding their attention to next week’s launch of earnings season. Alcoa kicking off the season Wednesday July 8th. Today Alcoa is the laggard on the Dow after Friedman Billings Ramsey downgrades it to underperform.

This week traders are focusing on housing as an indicator of the strength of the economy, and will have plenty of indicators to digest. The S&P/Case Shiller index will be released tomorrow morning, and May construction spending and pending home sales slated to be released Wednesday. Analysts expect pending home sales and construction spending to be fractionally negative, a reversal from April’s positive move.

Shares of KB Homes gained today after Credit Suisse upgraded the home builder to neutral from underperformed. Credit Suisse cited improving orders in the second quarter as the reason for upgrade.

Auto suppliers are leaders in the discretionary sector today. JP Morgan upgrades TRW Automotive Holdings to overweight from neutral, lifting the price target to $15 from $10. The parts supplier announced last Friday that it amended its $2.5 billion primary credit agreement. Shares of TRW skyrocketing today.

Correction:An earlier post mis-stated Alcoa would report earnings on Monday. That error has been corrected.

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