This Week's Market Movers - Analyst Blog
March 26 2012 - 4:39AM
Zacks
The market appeared to lose its momentum last week for the first
time this year as global growth worries overtook optimism about the
U.S. economic scene. Even so, the pullback is modest relative to
the gains thus far this year, and could easily get reversed given
this week’s potentially market-moving releases. The more likely
course for the market is a period of consolidation over the coming
days ahead of the coming earnings season that is now only a couple
weeks away.
This week’s releases start with Pending Home sales that come out
after the open today and is expected to show an improvement over
the preceding month. Last week’s New Home Sales and Housing Starts
misses aside, the housing sector is showing unmistakable signs of
stabilization. The most important driver of this favorable trend is
the ongoing labor market improvement and the enhanced buying power
that comes with it.
We should see the impact of the labor market developments in
Tuesday’s Consumer Confidence reading from Conference Board and
Friday’s measure from the University of Michigan. Wednesday’s
Durable Goods report is expected to show a significant improvement
from January’s decline.
Friday’s Personal Income & Outlays report has the potential
to cause positive revisions to current quarter GDP estimates. The
final read on the fourth quarter 2011 GDP report on Thursday could
be significant for the same reason as it could cause upward
revisions to the current quarter growth estimates.
The key component in the Thursday GDP report will be Personal
Consumption Expenditures or consumer spending. Upward revision to
fourth quarter consumer spending would show greater momentum coming
into the current quarter than initially expected, likely causing
growth expectations to go up.
In corporate news, shares of Lions Gate
Entertainment (LGF) will be in the spotlight following the
weekend success of its ‘Hunger Games’ movie. Cal-Mine
Foods (CALM), the producer and marketer of eggs, came
ahead of EPS expectations but missed on revenue and indicated
continued feedstock cost pressures. In other news,
Hewlett-Packard (HPQ) announced a 10% increase in
quarterly dividend.
CAL-MAINE FOODS (CALM): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
LIONS GATE ETMT (LGF): Free Stock Analysis Report
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