The Week Ahead: A Feast of Data Awaits

 | Jun 01, 2014 | 8:00 PM EDT  | Comments
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pcar

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cmi

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dmnd

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five

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vra

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qcom

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aapl

Last week closed the books on the month of May, and any novice investor knows that means we are two-thirds of the way through the current quarter. If you've heeded the Wall Street adage of "sell in May and go away," then you've missed out on the better-than-3% move in the Nasdaq. After all, investor sentiment has shifted for the technology, social media and other sectors that had been butchered in late March and April.

It wasn't just the Nasdaq, either: The S&P 500 put in a solid month, climbing just over 2%. That came as data pointed to a pick-up at least in the current quarter, following what we now officially know was a contraction in gross domestic product for the first quarter. In addition, we received another positive data point for the housing industry last week. Overall, it's been a good time to scoop up shares of companies such as Facebook (FB), Toll Brothers (TOL) and Apple (AAPL) in the last few weeks.

As we begin the month of June, we have the usual start of the month economic data -- auto-and-truck sales, as well as Friday's employment report. As I shared with TheStreetTV's Brittany Umar, within that report, Wall Street will be watching the May labor-force participation rate and wages even more closely than usual. In terms of overall job creation, the pick-up in housing activity and the early read on May manufacturing activity from Markit Economics suggest that we should see decent good job growth in May.

Tempering that, however, are recent announcements such as those from Hewlett-Packard (HPQ) and Barclays (BARC): In the coming weeks and months, we'll be seeing a pick-up in layoffs. It's still more of an employer's market, so odds are that May did not see a pronounced rise in wages. That, in turn, means The Cash Strapped Consumer remains with us. April personal spending already revealed a 0.1% dip, and with climbs in both food and gas at the pump, I continue to shun retailers such as Gap (GPS) and Pacific Sunwear (PSUN). Instead, I'm favoring such companies as McCormick (MKC) and American Water Works (AWK).

On the earnings calendar, we're not quite hitting the bottom of the barrel -- but the vast majority of companies have nonetheless reported already, so most of the fresh earnings news is behind us. That said, Navistar's (NAV) outlook bears watching, particularly if you own Paccar (PCAR) or Cummins (CMI) shares. I'm sure Herb Greenberg will dig into the latest from Diamond Foods (DMND), and that Brian Sozzi will once again offer some great insight into Five Below (FIVE), Quiksilver (ZQK) and Vera Bradley (VRA) next week.

Next week also brings us Apple's World Wide Developer Conference. The company is streaming live over the Internet, which seems to suggest that the company has some big things to announce. While it could be a new iPhone or iPad, or perhaps even a new set of Macs, speculation is running from the much-discussed iWatch to a new software platform that would put the iPhone at the center of the connected home.

Whatever Apple announces, it will mean pushing mobile connectivity beyond smartphones and tablets -- and that's a good thing for such chip companies as Qualcomm (QCOM). We own Qualcomm shares in the Thematic Portfolio, and it is a core long-term holding of ours, given the push-pull of the licensing-and-chip businesses, and also in light of the company's prospects for significant growth in mobile connections over the coming years. Qualcomm continues to hike its dividend, as well, which doesn't hurt.

Here's a more detailed look at what you can expect in the week ahead. Be sure to check back midweek for the Corner of Wall & Main, in which Lenore Hawkins and I dish on the first half of the trading week and other key matters and thoughts -- as well as how to play it all.

__________________

Economic Calendar

Monday, June 2

  • Markit Eurozone Manufacturing Purchasing Managers Index (PMI)
  • Markit U.S. Manufacturing PMI
  • Institute for Supply Management (ISM) Manufacturing Index (May)
  • Construction Spending (April)

____

Tuesday, June 3

  • HSBC China Manufacturing PMI
  • J.P. Morgan Global Manufacturing PMI
  • Factory Orders (April)
  • Auto and Truck Sales (May)

____

Wednesday, June 4

  • Markit Eurozone Composite PMI
  • Markit U.S. Service PMI
  • J.P. Morgan Global Composite PMI
  • Mortgage Bankers Association (MBA) Mortgage Index (Weekly)
  • ADP Employment Change Report (May)
  • Productivity and Unit Labor Cost (First Quarter of 2014)
  • ISM Services Index (May)
  • Crude Inventories (Weekly)
  • Federal Reserve Beige Book (June)

____

Thursday, June 5

  • Challenger Job Cuts Report (May)
  • Initial and Continuing Jobless Claims (Weekly)
  • Natural Gas Inventories (Weekly)

____

Friday, June 6

  • HSBC Emerging Markets Index
  • Employment Report (May)
  • Consumer Credit (April)

_________________

Earnings Calendar

Monday, June 2

  • Conns Inc. (CONN)
  • Krispy Kreme (KKD)
  • Quicksilver Inc. (ZQK)

____

Tuesday, June 3

  • Dollar General (DG)
  • Measurement Specialties (MEAS)
  • Mattress Firm Holding (MFRM)
  • ePlus Inc. (PLUS)

____

Wednesday, June 4

  • Brown Forman (BF.A, BF.B)
  • Five Below (FIVE)
  • Hovnanian Enterprises (HOV)
  • RealD Inc. (RLD)

____

Thursday, June 5

  • Analogic Corp. (ALOG)
  • Ciena Corp. (CIEN)
  • Cooper Companies (COO)
  • Diamond Foods (DMND)
  • Joy Global (JOY)
  • Vail Resorts (MTN)
  • Navistar International (NAV)
  • VeriFone Systems (PAY)

____

Friday, June 6

  • J.M. Smucker Company (SJM)
  • Vera Bradley (VRA)

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