A Big Week for Retailers, Will Inflation Be Held In Check?
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/qz3FQtQdVDI/16464Posted on Monday, May 11th, 2009 | In Market Commentary
This is the first major report coming out this week, and could have a real impact on the markets. Expectations are for a decline in sales since last month, albeit at a slower rate than previous months.
Tuesday
Earnings Announcements: AMAT
Wednesday
Economic Reports: Retail Sales
I’ve mentioned it before, but until Americans feel confident about the future of the economy, they won’t spend money. A slowing decline could show some hope that things are bottoming out. Tied into this report, and worth noting, is the large number of clothing retailers that are reporting this week (Macy’s, Nordstrom’s, JC Penney, Abercrombie and Fitch, Kohl’s, and American Apparel), and Wal-Mart’s earnings are announced on Thursday.
Earnings Announcements: FRE
Thursday
Economic Calendar: PPI, Core PPI
It looks as if inflation has been kept under control for at least another month. Both the PPI and Core PPI readings that are announced on Thursday are expected to show only the slightest increases since last month. We know inflation will start creeping in soon; it’s just a matter of when.
Earnings Announcements: WMT
Friday
Economic Reports: CPI, Core CPI, Industrial Production, Michigan Sentiment
As mentioned above, inflation has been held in check, and the CPI and Core CPI announcements that come out on Friday are expected to show little to no change since last month.
The Industrial Production report (and Capacity Utilization) for April are expected to show more sobering numbers. The manufacturing sector is going nowhere fast. Until these readings turn positive, any economic rally will be short lived.
Finally, the preliminary Michigan Sentiment report for May is released on Friday. Expectations are for a very small drop since last month. With the market moving up over the last few months, and the Fed stating that they see and end to the economic downturn by the end of the year, I think this report will surprise to the positive side. Nothing major, just a slight improvement.
Source: A Big Week for Retailers, Will Inflation Be Held In Check?
Last 5 posts by Christian Hill
- Don’t Believe What You Hear About a Housing Recovery - August 5th, 2009
- Inflation May Show It’s Ugly Head, Big Week for Bank Earnings - July 13th, 2009
- Don’t Be Afraid To Take The LEAP - July 8th, 2009
- Take Advantage of the Growing Demand for Composite Materials - June 17th, 2009
- The Ethanol Fraud - June 3rd, 2009
Abercrombie and Fitch;, American Apparel;, contrarian profits, Federal Reserve System, Jc Penney, Kohl's, Macy's, Market Commentary, Michigan, Nordstrom's;, Production, Wal Mart
 About Christian Hill (http://www.contrarianprofits.com)
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May 14th, 2009 at 9:20 am
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