Next Week's Market-Moving Events

By Oliver Pursche Oct 12, 2012 5:10 pm

Keep a close eye on the Dow Transport Index and key earnings reports.

MINYANVILLE ORIGINAL The S&P 500 (INDEXSP:.INX) lost about 2 ¼% this week, while gold and oil remained flat.

Next week at a glance:

Monday’s retail sales report will set the market mood (8:30 a.m. release). Look for continued positive momentum to build on this week’s consumer confidence numbers. Housing starts on Wednesday and home sales on Friday will also be critical economic reports. We expect a beat.
After a downgrade to BBB by S&P, look for increased talk of a full bailout for Spain.
JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) both beat EPS estimates on Friday. Look for the Citigroup (NYSE:C) report on Monday to provide direction to the financials.
Key earnings for the week include IBM (NYSE:IBM), Intel (NASDAQ:INTC), and CSX (NYSE:CSX) on Tuesday, Bank of America (NYSE:BAC), eBay (NASDAQ:EBAY), PepsiCo (NYSE:PEP), and Stanley Black & Decker (NYSE:SWK) on Wednesday, and American Airlines (NASDAQ:AMRN) GE (NYSE:GE), and McDonald's (NYSE:MCD) on Friday.

The Trade:

Since most of the market losses were realized on Monday and Tuesday, technical indicators are still intact as investors are seeing the market as “a glass half full.” Keep a close eye on the Dow Transport Index (INDEXDJX:DJT) and key earnings reports to offset likely positive economic news. Take profits and reduce risk on any rally.

Follow Oliver Pursche on Twitter: @opursche.