Be back with commodity futures market this week, as usual, we just have a look at the financial review by
Pitguru Frank LaMantia for help plan your investment!
The Financials Review
For the week of January 10th, 2011
In emerging markets today it seems as though China had a surplus of $13 billion which points to exports not selling as fast. It was expected that the surplus would be over $20 billion. Spain and Portugal are seeing yields rise over debt concerns and the ECB has decided to buy this debt to keep yields down. The question is does the market have this priced in? The stock market has been doing well despite debt issues and with the threat of a currency war. A currency war may be likely because countries want their exports to be cheaper to buyers. The lower the currency is the more probable it is that other countries will buy more products. You can keep track with
currency exchange for more support. There will be new stress tests by the US government for large U.S. banks and one of the topics on the block is letting banks buy back their own stock. This should be allowed as it shows confidence by the banks and allows for stock bonuses to be given out.
This week will be packed with economic data. Tuesday wholesale inventories will be announced and that number is expected to be 0.9% and was 1.9% when it was last announced. Wednesday the 12th exports and imports will be announced and were 0.8% with no expectations available to compare. Crude inventories were down -4.16 million at last announcement and may be down this round as well. The Treasury budget on Wednesday is expected to be $-80 billion and was down $-91 billion when last announced. On Thursday the 13th initial jobless claims are expected to be 415k up 6k from last week. Friday the 14th also seems to be a pretty busy day with PPI being forecasted to be around 0.8% and Core PPI to be 0.1%. All of the data is important this week but most will be concerned with the retail sales report which is expected to be 0.7% and could be as high as 1.0%. A number that should be watched is business inventories which are expected to be 0.8%.
The S&P is down -5 points to 1262.50 in the premarket while the DOW is down -34.76 to 11585 as debt concerns are still not going away. Some believe that banks will be stronger as the government becomes more involved in creating regulations.