Keystone's Key Events and Market Movers Week of 5/14/12

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Keystone presents the following underlying market currents, sometimes subtle, sometimes turbulent, that move global markets in real time.  The key dates and times below typically correspond to market pivot points. Retail Sales and earnings, Housing Starts, FOMC Minutes and the ongoing Greek tragedy are the key market catalysts this week.

Key Dates and Times for the Week Ahead:

·         Monday, 5/14/12:  The European debt crisis drama continues. Greece, Spain and Hungary are the major current worries.  Greece’s failure at forming a coalition government will necessitate elections tentatively scheduled for 6/17/12. Watch the European spreads closely such as the France-Germany 10-Year Yield Spread. Congress is in session which is market bearish. Watch for China triple R cut that would pump markets higher with liquidity. Earnings continue this week but many of the heavy hitters have reported.  About 70% of the earnings have beat lowered expectations which is in line but the lackluster guidance, as well as top line revenues that disappoint, are not enough to provide bullish oomph for markets. OpEx Monday’s are typically up days. Earnings: A, CNET, FONR, GSL, GRZ, GRPN, INOC, JASO, PTN, RENN, SINO, MOBI, SYN.

·         Tuesday, 5/15/12: Empire State Manufacturing Index, CPI (Consumer Price Index) and Retail Sales 8:30 AM-retail earnings and sales data are a key force on market direction this week.  TIC data 9 AM.  Business Inventories and Housing Market Index 10 AM-look for a market pivot point. For OpEx week, markets typically experience bullishness from Tuesday into Wednesday. Earnings: AONE, AGRO, ACAT, ASTI, LODI, CRTX, DKS, DSS, GOLF, HD, JCP, JDAS, SKS, SINA, SORL, SFUN, TJX, VAL, VIP, YGE.

·         Wednesday, 5/16/12:  Mortgage Purchase Applications 7 AM. Housing Starts 8:30 AM-one of Keystone’s most important monthly numbers-futures will react. Industrial Production 9:15 AM. Oil Inventories 10:30 AM.  Fed’s Bullard speaks 12:30 PM. FOMC Minutes 2 PM-look for a market pivot point. Markets tend to sell off into the new moon. Earnings: ANF, CHS, CTRP, DE, HOTT, INFU, LTD, NTES, SPLS, TGT.

·         Thursday, 5/17/12: Jobless Claims 8:30 AM.  Philly Fed Survey and E-Commerce Retail Sales 10 AM. Natty Inventories 10:30 AM. Fed’s Bullard speaks 12:35 PM.  10-Year TIPS Auction 1 PM. Fed Balance Sheet and Money Supply 4:30 PM.  Earnings: ARO, ALKS, ARUN, ADSK, BONT, BRCD, CATO, PLCE, DLTR, ENA, GME, GPS, JKS, MRVL, PSUN, ROST, CRM, SHLD, TK, TGP, TNK, BKE, VSAT, WMT, ZUMZ.

·         Friday, 5/18/12: OpEx Friday; markets will tend to move on Monday the opposite way they close out today. FB (Facebook) IPO begins trading. Earnings: ANN, BWS, FL, HIBB, PGR.

·         Sunday, 5/20/12: G8 Summit and NATO meeting. New moon. Lunar eclipse.

·         Tuesday, 5/22/12: Existing Home Sales 10 AM.

·         Wednesday, 5/23/12: New Home Sales 10 AM. Markets are typically bullish in front of a three-day holiday weekend.

·         Friday, 5/25/12: Consumer Sentiment 9:55 AM. Three-day holiday weekend. Markets are closed until Tuesday, 5/29/12 in Observance of Memorial Day.

·         Tuesday,5/29/12: Markets reopen for trading. Consumer Confidence 10 AM.

·         Sunday, 6/17/12: Greece elections, tentative schedule.

Note Added 5/13/12 at 7:25 PM:  China lowered the triple R's this weekend which should provide sitmulus to the markets. The move is resulting in a muted reaction, however, perhaps traders want to see an actual interest rate cut instead.

Note Added 5/14/12 at 5:06 AM: The China triple R cut appears too little too late. China will need additonal triple R cuts or to simply move ahead and lower rates. The Greece and Spain troubling news to start the new trading week is taking precedence. S&P futures are off over 10 points.