Week Ahead (4/30)

This week is going to be an interesting one and full of economic data. The key market moving data are 1) Personal Income and Outlays on Monday 8:30am, 2) ISM manufacturing index on Tuesday at 10am and 3) Employment data on Friday 8:30am (US EST). Last friday’s GDP data showed that economy is slowing primarily due to inflation. There are lot of reviews about that data, however, net if dive deeper, except housing, US economy seems to be in good shape in all other key areas.

There was another weekened report that US earnings are not as rosy as it seems (Reuters, NY via Strait times Singapore 4/30/07). Of the 309 companies that reported first quarter revenues, 24.6% of them delivered negative revenue surprises vs 23.96% last year. The key argument was that companies beat the estimates due to factors other than their underlying business fundamentals e.g. share buyback, asset sales, cost cutting, etc. For example, Google posted 69% 1st quarter growth, far better than estimates. The effective tax rate was 26%, not 30% as company steered analysts to expect this year. Though apple was a different story where all the growth was organic.


On the earnings front, it is a packed week once again. There are several companies that can move a lot. Stay tune for my daily coverage. Last week saw unusual options coverage on Palm, let’s see what doesn it hold for this weeek.

Profitable trading, OptionPundit






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