Weekly Market Newsletter, 12/18/06
The Week Ahead: A flat consumer price index for November fueled a continuation of the rally in stocks. The Fed is likely to stay on hold in the near term for interest rates, but core inflation is still above there annual targets. Therefore, watch this week's PPI release on Tuesday as well as the housing starts for November. Wednesday's weekly crude oil & gasoline inventories will be watched closely in lieu of recent oil price increases. Thursday, the important 3rd quarter GDP comes out along with the November LEI. Finally, Friday's durable goods, personal income and spending, and the December consumer sentiment numbers are revealed.
Stocks to Watch: General Electric (GE) boosted its quarterly dividend propelling the stock higher. Monsanto (MON) received an upgrade by Goldman Sachs. Quicksilver (ZQK) received a strong buy rating after a positive earnings release. Watch Adobe Systems (ADBE) as it will ship its popular design programs on time. On the downside Black & Decker (BDK) warned its 4th quarter will be substantially below estimates. Tektronix (TEK) was downgraded on weak earnings. Two stocks Navistar (NAV) and American Italian Pasta (PLB) were notified of de-listing procedures on the NYSE and are potential short candidates.
Special Note: As the year comes to a close, it's interesting to note that a record 1350+ CEO's have stepped down which is more than all of last year. Although most of this is do to the backdating of stock options, there has also been a push for many company's to go private through private equity firms or otherwise. This is very uncharacteristic of a market that is readying for a long term up-trend and is more in line with a market inside of an ending or topping trend. Look for more short term upside into year-end followed by increased downside volatility as 2007 begins.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
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Stocks to Watch: General Electric (GE) boosted its quarterly dividend propelling the stock higher. Monsanto (MON) received an upgrade by Goldman Sachs. Quicksilver (ZQK) received a strong buy rating after a positive earnings release. Watch Adobe Systems (ADBE) as it will ship its popular design programs on time. On the downside Black & Decker (BDK) warned its 4th quarter will be substantially below estimates. Tektronix (TEK) was downgraded on weak earnings. Two stocks Navistar (NAV) and American Italian Pasta (PLB) were notified of de-listing procedures on the NYSE and are potential short candidates.
Special Note: As the year comes to a close, it's interesting to note that a record 1350+ CEO's have stepped down which is more than all of last year. Although most of this is do to the backdating of stock options, there has also been a push for many company's to go private through private equity firms or otherwise. This is very uncharacteristic of a market that is readying for a long term up-trend and is more in line with a market inside of an ending or topping trend. Look for more short term upside into year-end followed by increased downside volatility as 2007 begins.
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
To view all of NobleTrading's historical newsletters, click here.
Click here to open an account.
NobleTrading Direct Access Trading
posted by NobleTrading at
9:46 AM
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