• 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. / Markets

The Week Ahead: Bond Yields, Personal Spending, GameStop Earnings and More

We are nearing the home stretch for the first quarter, so here's what's on tap.
By CHRIS VERSACE
Mar 21, 2021 | 10:30 AM EDT
Stocks quotes in this article: DRI, GME, ADBE, GIS, WGO, KBH, RH

The stock market continues to battle the upward move in bond yields as the much eyed 10-year Treasury furthers its year-to-date climb and inflation remains a key concern. Our belief is that, at least in the near-term, stocks, particularly growthier ones, will be caught between the push-pull of inflation worries and whether the Federal Reserve or the stock market is correct when it comes to inflation and what that means for the federal funds rate. 

While recent economic data showed a month-over-month slump, those headline figures mask favorable year-over-year comparisons particularly for key retail sales categories. With the Biden relief plan checks hitting accounts, more favorable weather conditions, and easing domestic pandemic restrictions the economic outlook looks increasingly favorable, especially compared to that for Europe. 

We see all of that raising confidence, which in turn should spur the reopening effort and translate into improving employment levels and consumer spending. 

It is our view that tech stocks are being painted with a broad brush amid prospective inflation and interest rate concerns -- and we strongly suspect those names that continue to generate solid revenue and earnings growth as well as positive cash flow from operations will prevail. 

With the stage set, what's on tap for the coming week?

Economic Data

We are nearing the home stretch for the current quarter and that means a number of economic data points to watch. There will be several pieces of February housing data, which will likely feel the impact of the recent winter storms similar to what we saw with the retail sales, industrial production and housing starts data for the month.

Also on the docket will be February Durable Goods Orders, and we'll be sure to focus on core capital goods orders, a proxy for capital spending levels. Late in the week, we will get the February Personal Income & Spending report, which will likely see a month-over-month decline following the positive bump in January that was due to the benefit of December stimulus checks.

Here's a closer look at the economic data coming at us this week:

Monday, March 22: February Existing Home Sales.

Tuesday, March 23: February New Home Sales.

Wednesday, March 24: Weekly MBA Mortgage Applications Index; February Durable Orders; Weekly EIA Crude Oil Inventories.

Thursday, March 25: Weekly and Continuing Jobless Claims; Fourth-Quarter 2020 GDP (Third Estimate); EIA Natural Gas Inventory report; February Leading Indicators.

Friday, March 26: February Personal Income & Spending; March University of Michigan Consumer Sentiment (Final).

Don't Forget Earnings

There are only a handful of corporate earnings reports to focus on this week. One we'll be most interested in will be Darden Restaurants  (DRI) as it discusses the expected impact of the Biden relief plan as well as loosening COVID-19 restrictions. We'll also be curious to see how the stock market reacts to quarterly results from GameStop (GME)  considering the volatile and high-profile moves in those shares over the last several weeks.

Here are the key reports we'll be watching:

Tuesday, March 23: Adobe (ADBE) ; GameStop (GME) .

Wednesday, March 24: General Mills (GIS) ; Winnebago Industries (WGO) ; KB Home (KBH) ; RH (RH) .

Thursday, March 25: Darden Restaurants (DRI) .

This commentary is an excerpt from the Trifecta Stocks Roundup, a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.

-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Earnings | Economic Data | Economy | Federal Reserve | Markets | Rates and Bonds | Treasury Bonds | Trifecta Stocks | U.S. Equity

More from Markets

Pivotal Tuesday, Buffett's Buys, Niagara Falls? Profit Margins, Trading Chevron

Stephen Guilfoyle
May 17, 2022 7:26 AM EDT

As investors ran away from equities earlier this year, Warren Buffett ran towards the market.

Inflation Is Killing the Consumer

Bret Jensen
May 16, 2022 12:00 PM EDT

It doesn't take much imagination to see how the average consumer is falling behind and losing substantial buying power.

Is a Stealth Bull Market Developing in These Long-Suffering Sectors?

James "Rev Shark" DePorre
May 16, 2022 11:10 AM EDT

I have my eye on relative strength in groups that have lagged for a very long time.

More Upside Potential Exists for This Market

Guy Ortmann
May 16, 2022 10:28 AM EDT

Let's take a close look at the charts and indicators.

Markets, Not So Confident Fed, Stocks Losing Streak, China Economy, My Trades

Stephen Guilfoyle
May 16, 2022 7:18 AM EDT

This week's earnings focus will be on the retailers with rivals such as Walmart and Target, as well as Home Depot and Lowe's reporting.

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

  • 03:07 PM EDT PAUL PRICE

    Why is Wal-Mart Down Big Today?

    Besides its poor earnings report Wal-Mart (WMT) wa...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • 08:51 AM EDT PAUL PRICE

    Advice From the Future...

  • 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