Stock Market Expectations for
The Week Ahead!

Another Wild Week But The Bulls Are Still Coming On Strong! Retail Earnings Will Be In The Spotlight!

Also, find out what we are considering for trades
in the week to come!

by Ian Harvey
November 18, 2019

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Past Week…..

Stock market expectations were met with a strong weekly performance from the major indexes, which extended their weekly winning streaks.

The on-going trade agreement between the U.S. and China caused ups and downs throughout the week, but the bullish bias was stoked by upbeat trade talk on Friday.

There were plenty of positive signs.....

  • There was a huge win from Boeing (BA) on Monday.
  • Walt Disney's (DIS) highly anticipated streaming service Disney+ made its debut on Tuesday last week; you can read the details here.
  • Walmart gave the retail sector a boost on a well-received report.
  • Dillard's (DDS) had a big earnings beat, and what its CEO called a "substantial improvement over the second quarter."

But, some negatives were also noticed.....

The Dow Jones Industrial Average managed to be up 1.2% for the week. The S&P 500 added 0.8% and the Nasdaq Composite was up by 1.2% for the week.

EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING NOVEMBER 11, 2019

DATE TRADE EXITING BEFORE EARNINGS GAIN/LOSS AFTER EARNINGS
November 12, 2019 OSTK DEC 20 2019 10.000 PUT 12% P.P. 64% P.P.
November 13, 2019 CSCO DEC 20 2019 50.000 CALL 71% P.P. -90%
November 14, 2019 WMT DEC 20 2019 120.000 CALL 50% P.P. 182% P.P.
November 14, 2019 AMAT DEC 20 2019 57.500 CALL 44% P.P. 289% P.P.
November 12, 2019 NVDA DEC 20 2019 215.000 CALL 34% P.P. 3% P.P.

If you wish to part of this action CLICK HERE.


Stock Market Expectations for the Week Ahead…..

Stock market expectations are still high for the week ahead for the major indices to continue to add to last week’s positives, as retail stocks take the spotlight.

Trade progress will be the big factor determining the progress of the stock market expectations.

The markets have started the month with a powerful, largely cyclical, rally. There is a stock market expectation that the many stocks just below new highs will break through this level and create new highs.

Energy, the leading sector this month, is up nearly 7%, with double digit gains in exploration and production companies like Apache and Devon, and services firms like Halliburton and Schlumberger.

There are driving forces for the rally......

  • progress on trade and the Federal Reserve, as well as
  • better economic reports in Europe and China and the U.S., and
  • seasonal strength.

Analysts are confident.....

  • Barclays says small caps are at an inflection point and poised to outperform: “Headwinds have subsided.”
  • Bank of America also expects the cyclical rally will continue: “We think the stage is set for a restocking-driven recovery in Spring 2020 to extend the cyclical rally.”
  • Morgan Stanley says: “We think a secular rotation from Growth to Value is beginning.”

Stock Market Calendar for the Week Ahead

The Fed will remain in focus, with the latest Federal Open Market Committee (FOMC) meeting minutes due out Wednesday, along with several Fed speeches which will trickle in throughout the week.

There is housing data with housing starts Tuesday and existing home sales Thursday. There is also Markit manufacturing and services PMI, which will be watched carefully Friday for signs of a pickup in manufacturing activity or any spillover from manufacturing weakness into services.

Monday

  • 8:30 a.m. Business leaders survey
  • 10:00 a.m. NAHB survey
  • 12:00 p.m. Cleveland Fed President Loretta Mester
  • 4:00 p.m. TIC data

Tuesday

  • 8:30 a.m. Housing starts
  • 9:00 a.m. New York Fed President John Williams
  • 10:00 a.m. QSS

Wednesday

  • 2 p.m. FOMC minutes

Thursday

  • 8:30 a.m. Initial claims
  • 8:30 a.m. Philadelphia Fed
  • 8:30 a.m. Cleveland Fed’s Mester
  • 10:00 a.m. Existing home sales

Friday

  • 9:45 a.m. Manufacturing PMI
  • 9:45 a.m. Services PMI
  • 10:00 a.m. Consumer sentiment

 

Stock Market Expectations for Earnings

Home Depot (HD) will headline the retail roll, with quarterly report from Macy's (M) and Target (TGT) also in the spotlight.

Monday

N/A

Tuesday

Home Depot, TJX, Kohl’s, Aramark, Medtronic, Campbell Soup, Foot Locker, Urban Outfitters

Wednesday

Lowe’s, Target, Salesforce.com, L Brands

Thursday

Macy’s, Nordstrom, Gap, Intuit, Ross Stores, Berry Global, Momo

Friday

JM Smucker, Buckle

Besides some of those companies mentioned above, which will be part of our considerations for members of “Earnings Predictions;” there are several that will be recommended to other members - of “Armchair Traders,”  “Cut-to-the-Chase” and “Mentorship.”

Find out our "Earnings Predictions" thoughts here!

Action to Take Based on the Stock Market Expectations…..

Stock market expectations for year end, would suggest that the market still isn’t bullish enough. Historically, when there is a positive move in the market in both January and February, and February is usually the second worst month of the year — second only to September, the S&P tends to be up 100% of the time.

The average total return is 24% for the full year during this time. So far this year, the index is up 24.4%.

Therefore, based on this information expect the S&P 500 to continue to reach record levels through December.

So.....

To get more overall investment insights, earnings predictions for the week ahead, and profitable trades provided to members in real time, join us at Stock Options Made Easy today!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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