Markets rallied to end the week despite weak jobs data. Participants were somewhat relived that the brunt of job losses were mainly due to gov't layoffs and that the weakness could engender further quantitative easing. That speculation added further weakness to the $USD, thus fueling a rally in stocks and the DOW was finally able to close above 11,000, a level not seen since five months. The weak dollar helped stoke the CRB index up 2.7%. Leadership was provided by the GKX + 6.3% (agribusiness) on the heals of a bullish USDA crop report, and the GYX (industrial metals) + 3.0%. Volume overall, was generally lackluster, implying that many investors are sidelined, awaiting real proof in terms of earnings, which get underway next week.
Companies scheduled to report earnings next week include:
Tuesday: FAST, ADTN, CSX, EXFO, INTC, and LLTC
Wednesday: ASML, HST, IGTE, JPM, APOL, and SPTN
Thursday: CBSH, FCS, LSTR, MTOX, PGR, SWY, GWW, AMD, GOOG, and JBHT
Friday: FHN, GCI, GE, GPC, INFY, KNL MAT, and WBS
The economic calendar is also full Thursday and Friday. Monday is Columbus Day (Canadian Thanksgiving) so expect light volume. FOMC minutes on Tuesday.
I'm assuming that prices can continue to drift higher short-term on continued dollar weakness. Next significant level of resistance on the SPY is $117.50-$118.00. However, the dollar could stage a relief rally anytime as it approaches support.
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