Wall Street Week Ahead: Attention turns financial results

Wall Street Week Ahead: Attention turns to financial results

NEW YORK – After more than a month to watch Capitol Hill and Pennsylvania Avenue, Wall Street is again what it knows best: Wall Street

big investment banks and commercial banks -. –

The first full week of earnings season is dominated by the financial sector, as private investors, free of the “fiscal cliff” worries have started to get back into the markets

Shares have risen in the new year rally after the first resolution of the year cliff in Washington on 2 January. The S & P 500 on Friday its second straight week of gains, making it only slightly away from a high five-year success rate closing price on Thursday.

“What we are looking for that demand. Demand from small businesses, to consumers is.”

RESULTS AND Economic Sentiment

investors were greeted with a slightly better than expected first week of the result, but the expectations were low and only a few companies reported results.

in the fourth quarter profit and revenue for S & P 500 companies are both expected to grow by 1.9 percent in the quarter, according to Thomson Reuters I / B / E / S

A few large corporations have reported on with Wells Fargo Bank, the first out of the gate Friday, your record a profit. The bank, however, made fewer mortgage loans than in the third quarter, and its shares fell 0.8 percent for the day.

, a gauge of U.S. bank stocks, is up to 30 percent increase from a low hit in June in six of the past eight months, including January.

investors will continue to see gains on Friday as General Electric completes the week after Intel’s report on Thursday.

residential, industrial DATA ON TAP

Next week is also the release of a wide range of economic data.

Tuesday the release of retail sales figures and the Empire State Manufacturing Index is seen, followed by CPI data on Wednesday.

investors and analysts will also focus on the housing starts figures and the Philadelphia Fed factory activity index on Thursday. The Thomson Reuters / University of Michigan consumer sentiment figures on Friday.

“You are not surprisingly so, if they are good, they will be more eye-catching, if they are not good,” he said. “The underlying drive of the markets, I think the economic data. That’s the catalyst.”

worry about the fiscal cliff lengthy negotiations, the markets went in the weeks before the ultimate second January resolution, but fear of the debt ceiling fight is not yet command the attention of investors to the same extent.

The agreement was probably part of the reason for a rebound in flows to equities. U.S. equity funds earned $ 7530000000 ninth resolution to the cliff in the week ending January. In a week since May 01, according to Thomson Reuters Lipper

Move

The deal in Washington to avoid the cliff up another debt battle playing in the coming months, in addition to spending debates. But this alarm sounded previously.

The CBOE Volatility Index <. vix> a gauge of traders fear is, from more than 25 percent so far this month and has recently hit the lowest level since June 07, before the start of the recession.

“The market does not react to the same news twice. It will be more brutal than the fiscal cliff,” said Krosby. “The market has been conditioned that in the end, they come to an agreement.”

From Yahoo