Tuesday, July 17, 2007

A Lot on Tap This Week

Lots to look at on Wall Street this week.

-Earnings appear to be driving stocks steadily upward. I'm keeping an eye on results of bank stocks, to see their thoughts with regard to the subprime sector. I'm also interested in what Caterpillar (CAT) comes out with.

-Commentary will be coming from Bernanke. He usually keeps it pretty close to the vest, but the market moves with anything he says.

-The Dow hit 14,000 this morning. Wow, it sure didn't take long to move from 13k to 14k. Most experts appear to be hedging their bets, but aren't giving up on this bull market until we see signs of a change.

-We also have options expiration, which should create some volatility toward the end of the week.

-Most investors are weighing the two major possibilities: 1) Earnings come in weak, and credit issues push us into a recession (where the Fed would probably cut rates), or 2) Inflation pressures make the Fed raise rates.

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