• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Discretionary

The Week Ahead: An Incredible Surge

But keep your wits about you -- and zero in on consumer data.
By CHRIS VERSACE AND LENORE HAWKINS Nov 02, 2014 | 08:00 PM EST
Stocks quotes in this article: WMT, UPS, V, DIS, KORS, S, EL, PCLN, SWKS, CHD, GPRO, BABA

What a surge the stock market saw last week! All three of the major market indices pressed higher throughout the past five trading days, with the real move higher coming on Thursday and Friday. One primary driver behind the sharp rise comprised the solid corporate earnings reports, which are shaping up to deliver stronger-than-expected growth than had been expected at the start of the September quarter. The other catalyst came in the form of the Bank of Japan's (BoJ) stimulative efforts.

There are three things to note here. First, following in the footsteps of the European Central Bank (ECB), the BoJ has launched its own bond-buying efforts, and this has elevated the dollar to the near seven-year high against the Japanese yen. Second, we continue to watch the strengthening dollar with hawk-like eyes, as a sustained climb could weigh on corporate income statements in the coming months. Lastly, these BoJ and ECB paddle-of-life efforts come at a time when the Federal Reserve has halted its own printing presses. That suggests we will see several two-speed economies, both inside the U.S. and on the world stage.

Yes, we said, "two-speed economies." The U.S. is the clear driver of global gross domestic product (GDP) growth, given the state of the economies in the eurozone and China.

A slate of purchasing managers index (PMI) data are due this week, and these numbers will inform us as to whether overseas economies are continuing on their nose-dive vector, or if they bottomed in October. While that latter possibility would be nice, we are not holding out hope for it. After all, China growth came in lower for October, per last week's China PMI reading from China Federation of Logistics and Purchasing (which issues the numbers with the National Bureau of Statistics).

In the U.S. we continue to get numbers that point to rising personal income, but choppy consumer spending as well. While we see falling gas prices as a tax cut for the consumer, he and she must still contend with higher food bills -- and recent increases in prices for beef, among other commodities, suggest that we will be here for at least a while longer. In October, the price farmers received for livestock was reported as 26% higher than it had been a year earlier, and the price for meat animals 28% higher, per the U.S. Department of Agriculture's (USDA) preliminary findings.

On top of that comes the need for folks to save for retirement. A new Wells Fargo/Gallup survey of investors shows that almost half of respondents are "very" or "somewhat" worried about outliving their savings. (Among non-retirees, that number came to 50%, and the retirees' figure was 36%.)

To us this says that, among the litany of economic data we'll get this week, one of the key points to watch will be wage growth in Friday's October employment report. Unlike the bullish National Retail Federation, Nielsen sees 2014 holiday sales rising just 1.9% year over year -- a far lower rate than what we saw last year.

That must be why companies such as Wal-Mart (WMT) are already banging the holiday sales drums, having kicked off the holiday shopping season this past weekend. Deals typically reserved for Black Friday and Cyber Monday are set to start on Walmart.com shortly after midnight, PST, on Monday, Nov. 3. In that vein, Versace continues to like shares of United Parcel Service (UPS) and Visa (V).

Turning to the earnings calendar, the pace of releases this week will slow somewhat from more than 150 S&P 500 companies down to "just" 86. Even so, a number of key reports are due out this week, including from Dow Jones Industrial Average component Disney (DIS). Also slated for the coming five sessions are numbers from Michael Kors (KORS), Sprint (S), Estee Lauder (EL), Priceline (PCLN) and Skyworks Solutions (SWKS). Then there's the company we like to watch to see if it delivers tingling results -- Church & Dwight (CHD) -- that may get a rise out of Wall Street analysts.

Separately, much as with GoPro (GPRO), we expect newly debuted Alibaba (BABA) to deliver on expectations when the company reports its first quarter as a public company this week. Call us cynical, but it would be nothing short of a disaster for Alibaba to deliver a flub -- t we doubt CEO Jack Ma intends to do that.

Below is a more detailed look at what's coming at you in the week ahead. Be sure to check back midweek for The Corner of Wall & Main, in which we will 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, Nov. 3

Report

Time Period

HSBC China Manufacturing PMI

October

Markit Eurozone Manufacturing PMI

October

Markit US Manufacturing PMI

October

JPMorgan Global Manufacturing PMI

October

ISM Index

October

Construction Spending

September

Auto Sales

October

Truck Sales

October

________________

Tuesday, Nov. 4               

Report

Time Period

Trade Balance

September

Factory Orders

September

________________

Wednesday, Nov. 5         

Report

Time Period

HSBC China Services PMI

October

Markit Eurozone Composite PMI

October

Markit US Services PMI

October

MBA Mortgage Index

Weekly

ADP Employment Change

October

ISM Services

October

Crude Inventories

Weekly

________________

Thursday, Nov. 6              

Report

Time Period

Challenger Job Cuts

October

Initial Claims

Weekly

Continuing Claims

Weekly

Productivity-Preliminary

Third Quarter

Unit Labor Costs

Third Quarter

Natural Gas Inventories

Weekly

________________

Friday, Nov. 7

Report

Time Period

HSBC Emerging Markets PMI

October

Employment Report

October

Unemployment Rate

October

Hourly Earnings

October

Average Workweek

October

Consumer Credit

September


__________________

Earnings Calendar

__________________

Monday, Nov. 3

Ticker

Company

ACW

Accuride Corp

ACXM

Acxiom Corp

ALE

Allete Inc.

CHD

Church & Dwight

CHGG

Chegg Inc.

CKP

Check Point Systems

CUTR

Cutera Inc

GVA

Granite Construction

L

Loews Corp

LF

LeapFrog Enterprises

NLS

Nautilus Inc

NTRI

NutriSystem

PRTS

Us Auto Parts

RLD

RealD Inc

RNWK

RealNetworks

S

Sprint Corp

SALE

RetailMeNot Inc.

SNH

Senior Housing

SOHU

Sohu.com Inc.

SYY

Sysco Corp

TXRH

Texas Roadhouse

USAK

USA Truck Inc.

__________

Tuesday, Nov. 4

Ticker

Company

ACUR

Acura Pharmaceuticals

ADEP

Adept Tech Inc.

ADM

Archer Daniels

AGU

Agrium Inc

AIG

American International Group

AKS

AK Steel Holding

AMTG

Apollo Residential Mortgage

APL

Atlas Pipeline Partners

ATVI

Activision Blizzard

BABA

Alibaba Group

BKW

Burger King Worldwide

BLMN

Bloomin' Brands

CKEC

Carmike Cinema

COUP

Coupons.com Inc

CSU

Capital Senior Living

CVD

Covance Inc.

CVS

CVS Caremark Corp.

CXW

Corrections Corp.

CYH

Community Health Systems

DISCA

Discovery Communicatios

DISH

Dish Network Corp.

DOX

Amdocs Ltd

EL

Estee Lauder

EMR

Emerson Elec Co.

FEYE

FireEye Inc

HLF

Herbalife Ltd

IEP

Icahn Enterprises

IFF

International Flavors & Fragrances

IP

Intl Paper

KORS

Michael Kors

KTCC

Key Tronic

LBY

Libbey Inc

MRO

Marathon Oil Corp.

MSI

Motorola Solutions

MWW

Monster WWD Inc.

OTTR

Otter Tail Corp

PBPB

Potbelly Corp

PCLN

Priceline.com

RBA

Ritchie Bros

RBC

Regal Beloit

RCPT

Receptos Inc

RGS

Regis Corp

RRGB

Red Robin Gourmet

SOHO

Sotherly Hotels

TESO

Tesco Corp

TIME

Time Inc

TRIP

TripAdvisor Inc

VLO

Valero Energy

VMC

Vulcan Materials Co.

VNO

Vornado Realty Trust

VSI

Vitamin Shoppe

ZAGG

Zagg Inc

ZBRA

Zebra Technologies

ZU

Zulily

____________

Wednesday, Nov. 5

Ticker

Company

ACLS

Axcelis Tech

ACT

Actavis Plc

ACTA

Actua Corporation

BLT

Blount Intl

BPI

Bridgepoint Education

BRP

Brookfield Res

BSFT

Broadsoft Inc

CBB

Cincinnati Bell

CBLI

Cleveland BioLabs

CBS

CBS Corp

MDLZ

Mondelez International

MED

Medifast Inc.

MEMP

Memorial Production

MGA

Magna International

NDLS

Noodles & Co

NMRX

Numerex Corp.

NUS

Nu Skin Enterprises

NWS

News Corp

NWSA

News Corp New

PWR

Quanta Services

PZZA

Papa Johns International

QCOM

Qualcomm Inc

RUTH

Ruth's Hospitality

SCTY

SolarCity Corp

SKUL

Skullcandy Inc

SSYS

Stratasys Ltd

STMP

Stamps.com Inc

STWD

Starwood Property

SWIR

Sierra Wireless

SYMC

Symantec Corp

TECU

Tecumseh Products

THI

Tim Hortons Inc

TSLA

Tesla Motors

TWX

Time Warner Inc

VVUS

Vivus Inc

WBMD

WebMD Health Corp.

XXIA

Ixia

Z

Zillow Inc

__________

Thursday, Nov. 6

Ticker

Company

AINV

Apollo Investment Corp.

AIRM

Air Methods Corp

AMCX

AMC Networks

AOL

AOL Inc

AWK

American Water Works

BPY

Brookfield Property

CF

CF Indus Holdings

COTY

Coty Inc

COWN

Cowen Group Inc

CXO

Concho Resources

DIS

Disney Walt

DOOR

Masonite International

DTV

DirecTV

DYN

Dynegy Inc

FSLR

First Solar Inc

FUN

Cedar Fair

FWM

Fairway Group

GNW

Genworth Financial

HAIN

Hain Celestial

HSC

Harsco Corp

HSIC

Henry Schein Inc.

KING

King Digital Entertainment

KLIC

Kulicke & Soffa

LOCO

El Pollo Loco

MCP

Molycorp Inc

MDRX

Allscripts Healthcare

MHLD

Maiden Holdings

MIFI

Novatel Wireless.

MM

Millennial Media

MNST

Monster Beverage

NLY

Annaly Capital Management

NVDA

Nvidia Corp

OWW

Orbitz Worldwide

PBH

Prestige Brands

PKD

Parker Drilling

POZN

Pozen Inc

PRGO

Perrigo Co Plc

RBCN

Rubicon Technology

ROVI

Rovi Corp

SF

Stifel Financial

SFM

Sprouts Farmers Market

SFY

Swift Energy Co

SNI

Scripps Networks

SSTK

Shutterstock

SWKS

Skyworks Solutions

TAP

Molson Coors

THS

Treehouse Foods

TROX

Tronox Ltd

TUMI

Tumi Holdings Inc

VC

Visteon Corp

WEN

Wendys Co/the

WIFI

Boingo Wireless

WIN

Windstream Communications

ZNGA

Zynga Inc.

_______

Friday, Nov. 7

Ticker

Company

CPK

Chesapeake Utilities

CRME

Cardiome Pharma

CTB

Cooper Tire

DAR

Darling International

GST

Gastar Exploration Ltd

HGR

Hanger, Inc.

HUM

Humana Inc.

ISIS

Isis Pharmaceuticals

JJSF

J&J Snack Foods

KBALB

Kimball Intl B

KMPR

Kemper Corp

KOG

Kodiak Oil & Gas

LGF

Lions Gate Entertainment

LMOS

Lumos Networks

LNT

Alliant Energy

MAIN

Main Street Cap

NFG

National Fuel Gas

NOG

Northern Oil & Gas

NU

Northeast Util

NXST

Nexstar Broadcasting

OSIR

Osiris Therapteutics

PGEM

Ply Gem Holding

PSEC

Prospect Capital

RIG

Transocean Ltd

SSP

E.W. Scripps Co.

STAY

Extended Stay

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Versace and Hawkins had no positions in the stocks mentioned, but the Thematic Growth Portfolio managed by Versace was long UPS and V.

TAGS: Investing | U.S. Equity | Consumer Discretionary | Economic Data | Stocks

More from Consumer Discretionary

Apple's Price Charts Are Getting Badly Bruised

Bruce Kamich
May 12, 2022 1:10 PM EDT

Here's what the odds favor.

RH and Its Charts Don't Have That Homey Feeling Right Now

Bruce Kamich
May 12, 2022 8:32 AM EDT

The technical signals of the home furnishings provider indicate more downside to come in its stock.

Crocs Is Still Slipping to the Downside on Its Charts

Bruce Kamich
May 11, 2022 7:44 AM EDT

The footwear maker isn't seeing a lot of technical support at this point.

Screening for Deep-Value Stocks Turns Up a Pair of Possibilities

Jonathan Heller
May 9, 2022 10:00 AM EDT

A producer of small appliances and a maker of fishing, camping and kayaking gear pop up as possible value plays.

Bearish Bets: 3 Slumping Stocks You Should Consider Shorting This Week

Bob Lang
May 8, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login