This is going to be a very busy week for the markets. Nearly one-fifth of the companies within the Samp;P 500 are going to report second-quarter earnings. Included in this group will be Dow components Microsoft (MSFT), Citigroup (C), Johnson amp; Johnson (JNJ), Pfizer (PFE), Intel (INTC) and Coca-Cola (KO). The economic calendar is packed and includes both the June PPI and CPI reports. Fed Chairman Ben Bernanke is scheduled to provide his quot;Humphrey-Hawkinsquot; testimony before Congress. And July options contracts expire on Friday.
Overall, I expect the earnings news to be better than expected and for the markets to react accordingly. The one wildcard, however, is that we will see reports from about 80 banks. This could push subprime issues and mortgage default rates to the forefront. As a result, the week will not be without risks. However, with the Dow in record territory, sentiment is clearly bullish.
Read the analyst report on JNJ.
Read the analyst report on KO.
Read the analyst report on PFE.
Read the snapshot report on INTC.
Read the snapshot report on C.
Read the snapshot report on MSFT.
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