RPT-Wall St Week Ahead: Stocks to track oil, PPI and banks
Source: Reuters India (Original Article)
(Repeats column initially transmitted late Friday)
By Ellis Mnyandu
NEW YORK, June 15 (Reuters) - Should oil prices extend
their pullback and data show no further deterioration in the
U.S. economy, stocks could rise this week. But investment
banks’ results will be the wild card.
The U.S. Federal Reserve’s increased discomfort with
inflation will also curb investors’ enthusiasm, with the May
Producer Price Index set to give the latest measure.
Major Wall Street investment banks Goldman Sachs (GS.N: Quote, Profile, Research),
Lehman Brothers (LEH.N: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research) are expected
to post poor results this week, hampered by more write-downs
and a sizable loss at Lehman.
The May PPI report, due for release on Tuesday, tops the
data list, followed by May housing starts, industrial
production and a reading on the first-quarter’s current
account. All of those numbers are on Tuesday’s agenda.
Also crucial in setting the market’s tone will be
Thursday’s weekly jobless claims and a survey of economic
conditions in the Mid-Atlantic region by the Federal Reserve
Bank of Philadelphia. For full economic diary, see [ECI/US]
“The market’s been oscillating … with each move
synchronized by daily volatility in the crude oil futures
market. We see that pattern continuing,” said Fred Dickson,
market strategist and director of retail research at D.A.
Davidson & Co. in Lake Oswego, Oregon.
“The market will probably continue to remain inflation
focused with PPI coming up. Our take is that investor reaction
to Best Credit Card Rate the CPI was that it could have been worse.” Continued…