Week Ahead: Auto Bailout, FOMC
A deal to channel federal money from Washington to desperate auto makers in Detroit; another interest rate cut by the Federal Reserve; and an expected pullback in oil production by the Organization of Petroleum Exporting Countries.
Investors will be responding to all of these events next week, in addition to watching earnings reports from delivery company FedEx, the last two standing investment banks, a handful of retailers and a big home builder.
MONDAY: Earnings from gun maker Smith & Wesson (SWHC). Also, housing related numbers from the National Association of Home Builders’ December Housing Index.
TUESDAY: The Federal Open Market Committee will announce a decision on whether to reduce key interest rates in its ongoing effort to light a fire under a U.S. economy deep in recession. Some economists believe the Fed could lower rates by another half percentage point, cutting the rate to 0.5%. Also, the November Consumer Price index will be released, shedding light on inflation. And earnings from bank Goldman Sachs (GS), retailer Best Buy (BBY) and home maker Hovnanian Enterprises (HOV).
WEDNESDAY: OPEC is expected to cut production by at least 1 million barrels in response to lower demand caused by the global economic slowdown. Earnings from banking giant Morgan Stanley (MS), food company Con Agra Foods (CAG), and sports retailer Nike (NKE).
THURSDAY: Economic bellwether FedEx (FDX) reports earnings, as do technology companies Oracle (ORCL) and Palm (PALM), as well as drug store owner Rite Aid (RAD).
FRIDAY: Earnings from bankrupt electronics retailer Circuit City (CC).
Link to story.