Oct 26, 2009 (MarketNewsVideo.com via COMTEX News Network) -- Economist warns U.S. to hold back on deficit reduction to avoid a Japanese style lost decade. Third quarter GDP numbers and a heavy earnings calendar expected to move the markets this week.
Good morning, I'm Angela Salvucci, with the Week Ahead Market Report for October 26, 2009.
In overseas equity markets this morning, Asian stocks are marginally higher. Japan's Nikkei 225 index is up 0.8 percent today while China's Shanghai Shenzen index was up 3/100th of a percent. Hong Kong's Hang Seng climbed 1.7 percent.
European equity markets also gained slightly overnight. The German DAX index is up 0.4 percent. Britain's FTSE 100 index rose 0.2 percent.
U.S. equity futures are flat in pre-market action.
The price of gold was flat in overnight trading at about $1,055 an ounce in morning trading, despite weakness in the U.S. dollar.
Oil prices were level on Monday morning, with the December light sweet crude contract trading around $80 a barrel.
Economic data could move the market this week, especially the advance third quarter GDP numbers.
On Wednesday, the September durable goods data will be released with a consensus expectation of 1.5 percent growth.
On Thursday, investors will get a first look at the economy's performance in the third quarter with the advance GDP report. Economists are expecting a return to growth with a 3.1 percent expansion. A lower number could send equity markets downward.
On Friday, personal income stats will be released. Economists are expecting no growth in personal income for the month of September and consumer spending is expected to have declined half a percent.
Former Federal Reserve Bank of New York official, Richard Koo, now chief economist at Japan's largest brokerage Nomura Securities, warned the Obama Administration to avoid acting too soon to address the record $1.4 budget deficit. Mr. Koo stated, If you learn your lesson from the Japanese experience, you don't remove your fiscal stimulus until private sector de-leveraging is over suggesting it could take three to five years to restore the economy.
On the earnings front, 149 S&P index companies will be reporting including several major oil companies.
Verizon (VZ) will report earnings on Monday. Analysts are expecting 59 cents per share in profits.
Analysts are expecting ConocoPhillips (COP) earnings per share to come in at 94 cents on Wednesday.
On Thursday, Exxon Mobil (XOM) will release earnings. The consensus estimate is $1.06 earnings per share.
Proctor & Gamble (PG) will also report on Thursday with expectations of 99 cents earnings per share.
Chevron (CVX) will report earnings on Friday with expectations of $1.45 cents per share.
Join us on Friday for the Weekly Market Roundup and have a wonderful week.
The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=200910WeekAhead102609&mv=1.
http://www.marketnewsvideo.com/
MarketNewsVideo.com
Copyright 2009 MarketNewsVideo.com
