A Look Ahead: Next Week's Market-Moving Events

By Oliver Pursche Dec 07, 2012 4:33 pm

Markets continue to be weighed down by geopolitical pressures and concerns over the looming fiscal cliff.

MINYANVILLE ORIGINAL No fear, no cheer, no movement. In spite of improving economic news, both domestically and globally, markets continue to be weighed down by geopolitical pressures and concerns over the looming fiscal cliff.

Next Week's Market-Moving Events:

Monday: German trade data takes on extra importance after both the Bundesbank and ECB Chairman Mario Draghi warned that the EU and Germany specifically are likely to experience a recession.

Tuesday: International news will continue to dominate the headlines as Japan releases CPI data and machinery orders while Germany reports its ZEW business survey.

Wednesday: The US is center stage; FOMC minutes and economic outlook will be released in the late morning before Fed Chairman Ben Bernanke holds his news conference.

Thursday: Jobless claims, Producer Price Index, and retail sales data are released and could particularly impact retail stocks after last Friday's surprise drop in consumer confidence data.

Friday: Industrial production figures are likely to overshadow US and European CPI data. (I like to look at the production figures along with manufacturing data as forward-looking indicators of economic activity.)

The Trade: If European and Japanese data are stronger than expected early in the week, start looking at stronger names in the industrial and manufacturing sectors. The market seems to want to rise, so any political progress could cause a “pop.” Hedging with January 140 SPY -- SPDR S&P 500 ETF (NYSEARCA:SPY) -- puts continues to be a wise strategy.

Follow Oliver Pursche on Twitter: @opursche.