Next Week's Market Moving Events: Yum Brands, Visa, Moody's Earnings on Tap

By Oliver Pursche  FEB 01, 2013 4:45 PM

Plus, the ISM non-manufacturing report and the International Trade Report will be released.

 


The S&P 500 ETF (NYSEARCA:SPY) turned 20 this week, as the index rose about 1%, in large part due to a 1% gain on Friday. The Equal Weight S&P ETF (NYSEARCA:RSP) slightly outperformed, gaining almost 1.2% for the week. Market volatility returned as mixed to slightly negative economic data reintroduced doubts about the strength and sustainability of the economic recovery. Through midday Friday, just under half of the companies within the S&P 500 (INDEXSP:.INX) have reported earnings; of these, 69% have beaten EPS expectations, while 64% have beaten revenue forecasts.

The Trade:

Energy is the only sector within the S&P to have exceeded both revenue and EPS estimates for the fourth quarter. Momentum oriented investors should reposition their portfolios to reflect this strength. Continued rotation into material and industrial names, as well as equal weight indexes, is still appropriate. Headwinds are likely to materialize in February, thus March dated hedging is advisable.

Next week's market-moving events: Follow Oliver Pursche on Twitter: @opursche.
No positions in stocks mentioned.