Week Ahead: No Hiding Place For Stocks

Apr 13 2014, 2:27pm CDT | by

Under-pressure stocks have no place to hide in the coming days, despite the possibility of lighter trading due to Passover beginning on Monday and U.S. stock and bond markets closing for Good Friday in the Easter week ahead.

The next four days brings an onslaught of earnings from more than 50 major companies in the S&P 500, speeches by Federal Reserve chair Janet Yellen, and a slew of economic indicators in the United States and China.

Also planned in the coming week are a number of high-profile initial public offerings (IPOs) of stock that will test the market’s appetite amid the rout of the techs.

Traders already twitchy cannot afford to switch off amid this flurry of economic and corporate news before the Easter break.

Investors may seek the perceived safety of blue chip shares as the rout in so-called “momentum” stocks in tech and biotech continues.

The technology-heavy Nasdaq Composite Index is down almost 5 percent for the month, the S&P 500 is down 3 percent, and the Dow Jones index is down 2.6 percent.

The real bloodbath has been in biotech shares. According to Reuters data, the Nasdaq biotechnology index has fallen 21 percent from its record high in February. The price-to-earnings ratio on this index is 34.4, compared to the forward price-to-earnings ratio for the S&P 500 of 14.9 — so the pain in these stocks may not be over.

The earnings news this coming week may not bring too much respite.

Analysts say that in the first quarter, growth in profits for S&P 500 companies is expected to have increased just under 1 percent from a year ago, way down from a January forecasts of more than 6 percent growth.

Only the brave bet against the U.S. stock markets, but the next few days will certainly test optimism.

Monday brings updates on U.S. retail sales for March, U.S. business inventories for February and earnings from Citigroup.

On Tuesday, Fed chair Janet Yellen is expected to speak by video to a conference in Atlanta in Georgia, the Consumer Price Index is due for release, investment bank Moelis & Co launches its IPO, and companies reporting earnings include Yahoo!, Intel, Johnson & Johnson and Coca-Cola.

Wednesday is a huge day for economic and corporate news in the United States and China. Data on China’s first quarter growth and March industrial production, investment and retail sales will be released as traders watch with anxiety.

Wednesday also sees data on U.S. housing starts, building permits and industrial production for March, the release of the Federal Reserve’s Beige Book report on economic conditions in its 12 districts, and a speech by Fed chair Janet Yellen in New York.

Yellen’s recent hint that interest rates could rise back toward normal levels a little bit faster than expected put many investors and traders on edge and they will watch her language closely this coming week.

Further, Wednesday also brings expected IPOs from travel software firm Sabre and Chinese microblogging company Weibo and earnings from American Express, IBM, Bank of America and Google.

Thursday brings big earnings news from Goldman Sachs, BlackRock, Morgan Stanley, General Electric, PepsiCo and UnitedHealth, as well as updates on U.S. initial weekly jobless claims and the influential Philadelphia Fed survey./>/>

It promises to be yet another week where anything could happen. Hang on to your hats.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Ebola toll rises to 1,350: WHO
Geneva, Aug 21 (IANS/EFE) The death toll due to the Ebola virus continues to rise in West Africa and currently stands at 1,350, the World Health Organisation (WHO) said.
 
 
India charges Nepal lowest interest rate
Kathmandu, Aug 21 (IANS) Compared to other South Asian countries, India charges Nepal the lowest interest rate for the lines of credit (LOCs) it offers, a diplomat here said.
 
 
An abusive boss can make entire team hostile
New York, Aug 21 (IANS) Is your boss abusive and does not pay much heed to even positive suggestions made by the team? Such superiors can actually throw the entire work team into conflict, hurting productivity, reveals a study.
 
 
OPEC daily basket price closes higher
Vienna, Aug 21 (IANS/WAM) The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) stood at $99.52 a barrel Wednesday, compared to $98.93 Tuesday, according to the OPEC Secretariat.
 
 
 

Latest from the Network

Real Madrid aim for big-six season
Madrid, Aug 21 (IANS) If pre-season results were anything to look on then Real Madrid coach Carlo Ancelotti would be feeling hot under the collar and looking anxiously over his shoulder following four defeats, one win...
Read more on Sport Balla
 
Israel killed three senior commanders: Hamas military wing
Gaza, Aug 21 (IANS) The al-Qassam Brigades, the military wing of the Islamist Hamas movement, Thursday said that Israel has killed three of its senior commanders in the Gaza Strip. It said the three commanders were...
Read more on Politics Balla
 
Ebola toll rises to 1,350: WHO
Geneva, Aug 21 (IANS/EFE) The death toll due to the Ebola virus continues to rise in West Africa and currently stands at 1,350, the World Health Organisation (WHO) said. Of that number, 576 have died in Liberia where...
Read more on Business Balla
 
India charges Nepal lowest interest rate
Kathmandu, Aug 21 (IANS) Compared to other South Asian countries, India charges Nepal the lowest interest rate for the lines of credit (LOCs) it offers, a diplomat here said. "This shows India's close affinity to...
Read more on Politics Balla
 
An abusive boss can make entire team hostile
New York, Aug 21 (IANS) Is your boss abusive and does not pay much heed to even positive suggestions made by the team? Such superiors can actually throw the entire work team into conflict, hurting productivity, reveals...
Read more on Apple Balla
 
Paltrow okay with Martin's relationship with Lawrence
Los Angeles, Aug 21 (IANS) Actress Gwyneth Paltrow reportedly approves of estranged husband Chris Martin's romance with Jennifer Lawrence. The "Iron Man 3" star, who recently started dating "Glee" co-creator Brad...
Read more on Celebrity Balla
 
Bradley Cooper reveals his love of Oasis
Hollywood superstar Bradley Cooper is a big fan of Oasis. Bradley, 39, has revealed his love of the group - who officially split in 2009 after a string of high-profile disagreements between Noel and Liam Gallagher - was...
Read more on Movie Balla
 
Dan Stevens gets in shape for The Guest
Dan Stevens has got himself in shape to play a former American soldier in 'The Guest'. The 31-year-old actor is almost physically unrecognisable from the character of Matthew Crawley, who he played in the popular...
Read more on Movie Balla
 
Unesco condemns American journalist's killing
Paris, Aug 21 (IANS) Unesco director general Irina Bokova Thursday condemned the beheading of US journalist James Foley by extremist Islamist militants in Iraq, calling it a "heinous killing". "I condemn the murder of...
Read more on Politics Balla
 
OPEC daily basket price closes higher
Vienna, Aug 21 (IANS/WAM) The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC) stood at $99.52 a barrel Wednesday, compared to $98.93 Tuesday, according to the OPEC Secretariat. The...
Read more on Business Balla