Monday, October 21, 2013

Economic Journal - Monday, 10/21/2013

(As of 7:15 am PST)
 
Stocks opened near the unchanged line but are inching higher in early trade as investors look to a peak week in earnings and upcoming economic data.  It’s a big week for earnings with names like McDonald’s, Proctor & Gamble, Microsoft and AT&T set to report.  It’s been a mixed bag for Q3 earnings so far.  Of the 93 companies that have reported from the S&P500 so far, 53% have topped Wall St. estimates on the revenue line, which is slightly below the 4 year average of 59%.  On the bottom line (earnings), 69% have topped estimates compared with a 4 year average of 73%.  Most reports have slid past markets as the government shutdown and debt ceiling debate took over headlines the past month.  Besides earnings, investors are looking ahead at a full week of economic data.  Several reports which were delayed by the government shutdown will be released this week including the Labor department’s key US nonfarm payrolls report.  This week’s report (delayed by 18 days) will not reflect the impact of the shutdown so market reaction will be difficult to interpret.  In any case, a return to fundamentals, including earnings and economic data, should determine price direction for this week and hopefully the remainder of the year.

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