What to Pay Attention to Heading into Next Week

What to Pay Attention to Heading into Next Week

The economic and earnings calendar has been light, but CAT’s earnings report next week could be a difference-maker.

What to Pay Attention to Heading into Next Week
What to Pay Attention to Heading into Next Week StockSnap

On the earnings front, Procter & Gamble beat expectations yesterday as Q4 earnings continue to come in without alarm. However, companies concerns’ are noted in forward guidance that reflects heightened anxiety surrounding the current trade wars. Today’s earnings calendar features American Airlines, Southwest Airlines, and Bristol-Myers, while Friday’s main release will be Colgate.

Next week begins with Caterpillar (CAT) reporting on Monday.  That will be significant given that last year CAT had negative forward guidance, suggesting a slowing economy. This created some volatility in the S&P 500 and other stock indices as stocks sold off because of it. The economic bellwether is already anticipating slower growth due to the trade war factors, so Monday, when CAT reports, it will be worth paying attention to.  This earnings release could potentially be the most noteworthy of this season. Tuesday features Verizon, Lockheed Martin, and Pfizer.

Deutsche Bank released a public statement yesterday suggesting the Fed should be even more dovish early this year. Investor and consumer sentiment is quite low given the shutdown, and this will hamper the Q1 GDP. Next Tuesday begins the two-day FOMC meeting. We will provide a technical update on Wednesday in preparation for the Fed statement.

Overnight, 10 out of 11 Asian stock markets closed higher, and this morning 11 of 13 European markets are trading higher as the U.S. futures are trading modestly higher. The 9-day moving average that we noted yesterday has continued to hold as support. We will continue to use this technical feature, and on intraday terms, will buy dips above this level.

Today's economic calendar features several items, but none that we consider noteworthy. Friday's calendar has relevant but non-market moving numbers at 8:30 and 10:00, while Monday and Tuesday's economic calendars remain very quiet.

Today’s Economic Calendar:

  • Jobless Claims 8:30 AM ET
  • PMI Composite FLASH 9:45 AM ET
  • Leading Indicators 10:00 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • Kansas City Fed Manufacturing Index 11:00 AM ET
  • EIA Petroleum Status Report 11:00 AM ET
  • 3-Month Bill Announcement 11:00 AM ET
  • 6-Month Bill Announcement 11:00 AM ET
  • 52-Week Bill Announcement 11:00 AM ET
  • 2-Yr FRN Note Announcement 11:00 AM ET
  • 2-Yr Note Announcement 11:00 AM ET
  • 5-Yr Note Announcement 11:00 AM ET
  • 7-Yr Note Announcement 11:00 AM ET
  • 4-Week Bill Auction 11:30 AM ET
  • 8-Week Bill Auction 11:30 AM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply 4:30 PM ET

Friday’s Economic Calendar:

  • Durable Goods Orders 8:30 AM ET
  • New Home Sales 10:00 AM ET
  • Baker-Hughes Rig Count 1:00 PM ET

Monday’s Economic Calendar:

  • Chicago Fed National Activity Index 8:30 AM ET
  • Dallas Fed Mfg Survey 10:30 AM ET
  • 2-Yr Note Auction 1:00 PM ET
  • 5-Yr Note Auction 1:00 PM ET


Tuesday’s Economic Calendar:

  • 8-Week Bill Settlement
  • FOMC Meeting Begins
  • International Trade in Goods 8:30 AM ET
  • Retail Inventories [Advance] 8:30 AM ET
  • Wholesale Inventories [Advance] 8:30 AM ET
  • Redbook 8:55 AM ET
  • S&P Corelogic Case-Shiller HPI 9:00 AM ET
  • Consumer Confidence 10:00 AM ET
  • 4-Week Bill Announcement 11:00 AM ET
  • 8-Week Bill Announcement 11:00 AM ET
  • 52-Week Bill Auction 11:30 AM ET
  • 2-Yr FRN Note Auction 11:30 AM ET
  • 7-Yr Note Auction    1:00 PM ET

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