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| Subject: Retail sales, Philly Fed also on agendaFed TuesdayMarch13 | |
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Author: Week 11 |
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Date Posted: 07:53:48 03/12/12 Mon U.S. stock market outlook: Greece fades, Fed looms Retail sales, Philly Fed also on agenda after bumpy weekStories You Might Like •Sponsored: this site Apple: Preorders for new iPad 'off the charts' •Sponsored: this site Most Asian markets fall after China trade data •Sponsored: StreetAuthority A 7%-Yielder in an Energy Sector You Aren't… [?]82 Comments Share Digg Yahoo! Buzz MySpace del.icio.us Reddit LinkedIn Fark StumbleUpon Newsvine newPortfolio Relevance LEARN MOREWant to see how this story relates to your portfolio? Just add items to create a portfolio now: XAddDow Jones Industrial Average (DJIA)XAddDAX Performance Index (DAX)Add Create Portfolio or Cancel Already have a portfolio? Log In By Sue Chang, MarketWatch SAN FRANCISCO (MarketWatch) — After riding the Greek-debt roller coaster for more than two years, U.S. investors may finally get some respite next week, shifting focus to the Federal Reserve and whether the Dow average can retest 13,000. “We should be able to put Greece in our rearview mirror,” said Myles Zyblock, chief equity strategist at RBC Capital Markets. Click to Play U.S. week ahead: Fed, sentimentWith Greece on the backburner, investor attention could turn to a Fed meeting, consumer sentiment, and what both reflect about an improving labor market and rising oil prices. The Greek government on Friday announced that 83.5% of its private-sector creditors agreed to a bond-swap deal, moving Greece closer to securing a crucial second bailout, which could get finalized next week. Because the rate was short of 90%, Athens exercised collective-action clauses to force more bondholders to participate. That move prompted the International Swaps and Derivatives Association committee to declare a “restructuring credit event,” which triggers a payout of some $3.2 billion in credit default swaps on Greek debt. Read about Greece debt swap As ominous as that sounds, the triggering of Greece’s CDS is not expected to have a lasting impact on the stock market, according to Zyblock. Stocks trimmed gains after the ISDA announcement but closed moderately higher, extending gains to a third day. The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +0.22% edged up 0.1% to close at 12,922.02 Friday, about 80 points shy of 13,000. The S&P 500 /quotes/zigman/3870025 SPX -0.07% rose 4.96 points, or 0.4%, to 1,370.87, while the Nasdaq Composite /quotes/zigman/123127 COMP -0.23% climbed 17.92 points, or 0.6%, to 2,988.34. For the week, the Dow posted a slight loss while the S&P and the Nasdaq both extended their weekly winning streaks to four. Read MarketWatch’s stock market report Overall, any decline in stocks isn’t likely to be long or drawn out, and should be viewed as an opportunity to bargain hunt, Zyblock added. “There will be volatility but the index will not drop that much,” he said. As Greece fades from the investment radar for the time being, domestic issues will take on increasing importance. Fed Tuesday The Federal Open Market Committee will meet on Tuesday to decide on the monetary policy. Expectations are low that it will jolt markets. “The March 13 meeting of the Federal Open Market Committee is likely to be a more routine affair than the policymakers’ last meeting in January. We expect no new policy or communications initiatives to arise from this one-day meeting,” said Neal Soss, chief economist at Credit Suisse, in a research note. Jerry Webman, chief economist at OppenheimerFunds, said for the most part, the Fed is expected to stick to the manual and say something along the lines of “if we get Papa bear or Baby bear’s porridge, expect the Fed to adjust monetary policy to warm it up if it’s too cold or cool it off if it’s overheating,” Webman said. Click to Play Europe's week ahead: retail salesEuro-zone finance ministers meet and Greece aims to have completed the bond swap before that, U.S. releases retail sales figures, plus earnings from Volkswagen and Antofagasta. Photo: Reuters Investors are also expected to listen closely for hints on additional quantitative easing, or what’s known as QE3, according to Zyblock. “But it will be difficult to talk about QE3 when jobs are being created,” he added. Still, given the rise in energy prices and improving labor data, one can’t completely rule out changes in the FOMC statement, according to Soss. [ Next Thread | Previous Thread | Next Message | Previous Message ] |