Saturday, January 27, 2007

A Traders Dream

Next week is a dream week for the active trader: Not only does Google, Inc. (NasdaqGS:GOOG) report earnings [Wall Street expects $2.90/sh], but we'll also find out a lot about the state of the economy.
  • Altria (NYSE:MO) reports on 1/31 (Est. $1.23) and is widely expected to announce the details of their Kraft spin-off. I've heard rumors from anywhere b/w 0.62 and 0.72 shares of KFT for every share of MO. We'll have to wait and see.
1/31 is a HUGE day for economic data, and will certainly influence investors:
  • GDP (Est. 3.0%)
  • Chicago PMI (Est. 52.0)
  • Crude Inventories (For week ended 1/26)
... All those numbers precede the F.O.M.C's policy statement at 2:15pm. Steve Leisman of CNBC pointed out that CBOT Fed Fund futures show a non-existent chance of rate cuts or hikes -- and also revealed that the 10-year note (yield 4.879%) has been climbing, and could be silently doing the Fed's job. Expect 5.25% for some time yet.

Chart is (C) of

We'll also see unemployment rate early Friday morning, expected to hold at 4.5%.

Disclosure: I have no position in GOOG, MO or KFT. This commentary is for informational purposes only and is not a recommendation to buy or sell any security.

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