11:10pm (EST)
1. Market Summary
2. American Water Works (AWK) Looks Good for a Thirsty Portfolio
3. Vertex Pharmaceuticals (VRTX) – A $55 Stock Going to $90?
4. Earnings
5. Weekly Wrap Portfolio Update
6. Week Ahead
(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section after 8:30pm)
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1. Market Summary
The bulls and bears were at a standstill heading into Friday’s action with both sides trying to hold on for the weekly win. The bulls had a grip on the Dow and S&P following a mid-week recovery while the bears had a handle on Tech.
Heading into Friday’s session, futures were favoring the bears as Wall Street worried over a rising dollar, May options expiration, another downgrade of Greek debt and ongoing geopolitical concerns. The bears used these headwinds to push the major averages back towards critical support levels but the bulls were able to hold the lows and rallied back briefly before surrendering into the close.
Although the bulls lost the weekly battle, they were able to hold support which is the good news. The bad news is that the bears seem to be gathering momentum after taking their third-straight week but will it be enough to break the current long-term uptrend?
The Dow dropped 93 points on Friday, or 0.7%, to finish at 12,512. The index did manage to stay within the trading range we outlined from last week although the test to the top of the range was not as strong as the drifts to the downside. The blue-chips tested our 12,500 downside target on Monday and we said a break below this level could lead to 12,350. On Tuesday, the Dow traded to a low of 12,378 but closed at 12,479 and held its 50-day moving average. These two downside targets will remain in play if there is further selling pressure. The rebound on Wednesday and Thursday was positive and short-term resistance remains at 12,700-12,800 with a shot at 13,000 if penetrated. For the week, the Dow fell 83 points, or 0.7%. The Dow started the month of May at 12,810 and is still up 8.1% YTD. If the bulls can rally past resistance, we could see new highs over the next few weeks.
The S&P 500 fell 10 points, or 0.8%, on Friday to settle at 1,333. The index traded to a low of 1,318 by Tuesday (and below our 1,325 target) but never really came close to breaking down to 1,300. Although the S&P danced around its 50-day MA, it was able to hold this level and closed just a hair below the double of 1,334 which marks the March 2009 lows. The bulls made a run at 1,350 on Wednesday and Thursday and this level is still being watched for a breakout up to 1,370. If cleared, the index could test 1,400, quickly. For the week, the S&P 500 slipped 5 points, or 0.3%. The index began the month of May at 1,337 and is showing a 6% gain YTD.
The Nasdaq declined 20 points on Friday, or 0.7%, to 2,803. Tech closed below our first downside target of 2,800 on Monday and we said to look for a test down to 2,750 if this level was taken out. The index touched intraday lows of 2,779 and 2,759 on Monday and Tuesday but was back above 2,800 by Wednesday’s close after holding its 50-day MA. The bulls got to a high of 2,828 by Thursday and were looking to challenge resistance at 2,850 on Friday but had no luck as Tech stayed in the red for the entire session. There is still a good shot the bulls break resistance and hit 3,000 after holding down 2,800-2,750 all week. For the week, the Nasdaq gave back 25 points, or 0.9%. The index ended April at 2,873 and is negative for May but showing a 5.7% gain YTD.
We mentioned last week that bull market rallies show signs of fading with weak Friday and Monday closes. We had also mentioned there had only been three occurrences where the S&P 500 finished lower on a Friday and the Monday after. Make that four with last Monday’s lower close.
The problem the market faces on Monday if we do close lower will be a back-to-back consecutive lower Friday/ Monday finishes. We have said this could signal a trend change and we will continue to monitor this development but we still have this feeling the market is going to hit new highs in June.
The S&P 500 Volatility Index (^VIX, 17.43, up 1.91) surged over 12% on Friday but stayed below the 20 level we told you to watch for last week. The VIX traded to a high of 19.09 on Tuesday and tested the May highs but we have stayed below 20 since late March.
From last week:
“We said that when the bulls reached a peak in April the index could trade down to 13-14 and 14.27 was the low on April 28. The VIX traded up to 20 during the first week of May and is back into the high teens. There is a still a chance the VIX trades back down to 13-14 which would mean Dow 13,000; S&P 1-375-1,400; and Nasdaq 2,900-3,000.
If the VIX pops over 20, then look for our downside targets to be tested.”
In review, if the VIX stays below 20 to start the week and the market closes higher on Monday, then we expect to see a test of resistance by the end of the month. If the bulls can get close one more time there is a chance for a huge short-covering rally which could lead to a breakout and new 52-week highs.
If the VIX does break 20 and the market closes lower on Monday, then we could see a pullback of 5%-10% before we challenge new highs again. As you can see from the chart, the VIX is just below its 50-day MA and a break above this level means a higher VIX and a lower market.
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2. American Water Works (AWK) Looks Good for a Thirsty Portfolio
Water, the commodity needed for everyday life, will almost certainly become in higher demand as the population grows. Less than 1% of all the water on the planet is fresh water while 68% of fresh water is in ice sheets and polar ice caps. That means there is very tight supply of fresh drinking water and companies that treat water and make it drinkable stand to benefit. This is where American Water Works (AWK, $29.40, up $0.07), the largest publicly traded U.S. water and wastewater utility company, comes into play.
The New Jersey based company provides water treatment for approximately 15 million people in more than 30 states and 2 Canadian provinces, as shown in blue on the map.
American Water Works has 80 surface water treatment plants, 600 groundwater treatment plants, 1,200 groundwater wells, 50 wastewater treatment facilities, 1,200 treated water storage facilities, 1,200 pumping stations and 100 dams, and 49,000 miles of mains and collection pipes.
The company has been increasing its dividend by 5% every year since 2008, a sign of financial strength. Operating revenues have been increasing by 7.7% every year during the same time period.
The company recently announced a solid first-quarter results and based on earnings and revenue trends, it appears that it will beat estimates when it reports earnings again in early August. Earnings estimate is $0.46 on revenue of $707.84 million. In the graphs below, the 2nd quarter 2011 (8/11) point is the estimated earnings. The y-axis for year-over-year quarterly revenue is same as that of quarter-over-quarter revenue. Same goes for earnings graphs.
Both the revenue and earnings show a shallower slope for the second quarter than the first quarter for the year-over-year quarterly revenue and earnings. Plus, quarter-over-quarter revenue and earnings seem to predict a jump. This could especially be true with the recent flooding of the Mississippi River which will likely increase work for the company, and thus boost its revenues.
Recently, the company announced that it expanded its service in Missouri by acquiring 11 water systems and 59 wastewater systems from Aqua America (WTR, $22.61, up $0.04) for approximately $3 million and sale of properties in Texas. The acquisition added 3700 new customers to its existing 1.4 million customers in the Missouri area and strengthened AWK’s strong presence in the state. Missouri accounts for a 13% of its customers.
The EPA estimates that $500 billion must be spent to improve the nation’s aging water infrastructure over the next 20 years. The Sustainable Water Infrastructure Investment Act of 2011 opens funds that were originally capped. With a market cap of $5.16 billion, even a small amount of that $500 billion will greatly benefit the company.
The technical outlook in the graph below shows that the stock will likely continue rising along its resistance and support range trend lines. The last two times the technicals were at similar levels, the stock rose, as indicated by the vertical purple lines. And the orange line shows that the technicals were closer to overbought territory when the stock temporarily fell.
In uncertain times for the market, investors usually flock to defensive stocks such as utilities which are considered a safe investment. Also, the stock’s 3% dividend yield attracts income investors. We think there is a good opportunity to ride the stock up, collect dividends, and squeeze out a little extra income by using covered calls.
In using covered calls, an investor sells a call option while holding the stock. The trick is to have the strike price just high enough so that the calls are not excised on or before the expiration date. If the price goes above the strike price, the calls are excised, and you will be forced to sell the shares. If the price does not go above the strike price, the calls expire, and you keep the stock while gaining a little extra income from the sale of the calls.
From the graph, if we use a slope of 2.6 cents a day and the current price of $29.40, the stock would reach $30 by late June. However, if we use a maximum slope value of 16 cents a day, shares could be pushing $32 by the time the June options expire.
We may open this trade on Monday as an official recommendation for the portfolio and we are targeting the June 30 calls (AWK110618C00030000, $0.40, flat) to cover. If we are “called away” by mid-June the trade would make 3%.
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3. Vertex Pharmaceuticals (VRTX) – A $55 Stock Going to $90?
Hepatitis C is a virus commonly spread through needle-sharing and can be transmitted sexually if the partner has the disease. There is no vaccine available, and the virus can cause liver cancer. This is causing drug companies such as Vertex Pharmaceuticals (VRTX, $55.00, up $0.21) to race for a drug to treat the disease. Any breakthrough could be huge for the company.
The Cambridge, Massachusetts biotech firm’s experimental drug Incivek has shown positive results in tests. It even shows superiority to its next best competitor, Merck’s drug, Victrelis.
The company expects a decision on its hepatitis C drug Incivek, in the U.S. on Monday although it’s not a hard date. Thus, expect for the stock to be halted tomorrow but it could be Tuesday. If you can get in before the halt, shares might be a buy because of likely approval for the drug. Of course, if not, shares will likely suffer if there is a setback.
Vertex Pharmaceuticals currently has a market cap of $11 billion. Merck is pricing its rival drug Victrelis for $1,100 a week, which equals $59,400 a year. Thus, Incivek needs to capture slightly more than 185,000 patients to justify its $11 billion market cap. That seems possible since chronic hepatitis C affects 3.2 million people in the U.S. and 170 million people worldwide. The translates to 5.7% of the U.S. market or 0.1% of the world market. Since there is no vaccine for the virus, the market will likely get split between Incivek and Victrelis.
Pricing for Incivek is speculated to be about $100,000 a year, a large disadvantage to Merck’s drug. However, dosing for Victrelis doesn’t begin until after patients are treated with four weeks of interferon and ribavirin so the trade-off is if the patients want to start right away. Plus, some may prefer Incivek’s superior results over Victrelis.
Adjusting to a price of $100,000, if Victrelis gets 5.7% of the U.S. market, Vertex could command a market cap of $18 billion which gets shares near $90. But it could be worth well north of that figure.
And this is only one drug. Vertex has another drug in phase III trials for cystic fibrosis and two in phase IIa trials: VX-222 for HCV infection and VX-809 also for cystic fibrosis.
The stock is nearing short-term support, but this information is not that relevant of companies near drug approval. Three of the four technicals are near oversold territory, meaning a pop may be likely.
As for as call options, watch the June 65 calls (VRTX110618C00065000, $0.70, up $0.10) which should do well on an approval. As far as put options on a negative review, watch the June 45 puts (VRTX110618P00045000, $0.70, up $0.10). Both of these options could be used as a strangle trade but shares will need to move about 20% or the premiums will deflate rapidly.
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4. Earnings
The companies in BOLD, we are looking at as possible trades and we may list call or put options on them in our Daily Newsletter. If they become official recommendations, we sent out Trade Alerts or include them in our 9am and 1pm updates that come out during the week. The first set of companies report before the bell that day, the second set after the market closes. (Quotes are as of Friday’s close, 5/20/11).
MONDAY
Campbell Soup (CPB, $35.24, down $0.10), China Sunergy (CSUN, $2.90, down $0.02), Krispy Kreme Doughnuts (KKD, $6.40, Flat), Perry Ellis International (PERY, $29.50, down $1.03), Tech Data (TECD, $53.57, up $0.22)
CNinsure (CISG, $16.19, down $0.03), Gladstone (GAIN, $6.90, down $0.31), GT Solar International (SOLR, $12.32, down $0.05), HiSoft Technology International (HSFT, $14.96, up $0.10), Perfect World (PWRD, $23.98, down $0.04), Verigy (VRGY, $14.10, Flat)
TUESDAY
AutoZone (AZO, $276.60, down $0.55), Cracker Barrel Old Country (CBRL, $52.80, down $.25), DSW (DSW, $43.31, down $1.08), Medtronic (MDT, $42.21, down $0.61), SinoCoking Coal and Coke Chemical (SCOR, $28.33, up $0.02)
Applied Materials (AMAT, $14.09, down $0.24), Avago Technologies (AVGO, $$34.39, down $0.42), Express (EXPR, $22.17, down $0.88), KongZhong (KONG, $6.60), up $0.42), Take-Two Interactive Software (TTWO, $16.88, down $0.53), TiVo (TIVO, $9.47, Flat)
WEDNESDAY
American Eagle Outfitters (AOE, $13.52, down $1.10), Bank of Montreal (BMO, $63.90, down $0.37), Costco Wholesale (COST, $83.40, down $0.46), Frontline (FRO, $20.42, down $0.24), Hormel Foods (HRL, $30.08, down $0.18), Polo Ralph Lauren (RL, $130.21, down $5.89), Suntech Power Holdings (STP, $7.70 down $0.20), Toll Brothers (TOL, $20.66, up $0.05)
99 ONLY Stores (NDN, $20.16, down $0.16), Ascena Retail Group (ASNA, $31.24, down $0.61), NetApp (NTAP, $53.70, down $0.75), Semtech (SMTC, $28.10 down $0.15)
THURSDAY
Big Lots (BIG, $33.55, down $0.22), Canadian Imperial Bank of Commerce (CM, $86.74, down $0.37), Fred’s (FRED, $13.71, down $0.18), Geneso (GCO, $40.78, down $0.88), H.J. Heinz (HNZ, $53.89, down $0.04), hhgregg (HGG, $12.96 down $0.04), Movado Group (MOV, $16.51, down $0.47), Patterson Companies (PDCO $35.79, down $1.01), Sony (SNE, $27.05, down $0.17), Sycamore Networks (SCMR, $22.92 up $0.06), Tiffany (TIF, $69.24, down $1.02)
AFC Enterprises (AFCE, $15.50 down $0.07), Apollo Investment (AINV, $11.19, down $0.11), Blue Coat Systems (BCSI, $24.91, up $0.54), Guess (GES, $41.28, down $2.32), Marvell Technology Group (MRVL, $14.34, down $0.09), OmniVision Technologies (OVTI, $35.54, up $0.77), rue21 (RUE, $29.70, down $0.92), Seneca Foods (SENEA, $26.95, up $0.24), Sigma Designs (SIGM, $11.83 down $0.01)
FRIDAY
Columbus McKinnon (CMCO, $19.98, up $0.02), Graham (GHM, $21.86, down $0.25), Mentor Graphics (MENT, $14.69 down $0.04), Quality Systems (QSII, $88.39, down $1.22), Royal Bank of Canada (RY, $61.88 down $0.19)
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5. Weekly Wrap Covered Call Portfolio Update (Closing prices as of 5/20/11)
Vivus (VVUS, $8.81, up $0.24)
June 8 calls (VVUS110618C00008000, $1.00, up $0.20)
Original Entry Price: $7.93 (5/11/11)
Lowered Price from Selling Options: $7.43
Exit Target: $10+
Return: 19%
Stop Target: None
Action: This trade has got off to a great start as Vivus rallied 10% for the week. Shares are rapidly approaching resistance (green circles) which is at $9 (black line). Vivus will be presenting its diet drug, Qnexa, at the European Congress on Obesity, May 25-28, in Istanbul. There is a chance for a breakout on the headline news as the talking heads bring it to your attention but if shares retreat from here we can feel pretty comfortable that a trading range of $7-$9 is taking shape.
There is much talk about approval here in the U.S. but Qnexa could get the nod from overseas quicker which is what the suit-and-ties aren’t factoring in. We have gone on record as saying Vivus has the best shot of getting a diet drug on the market in what will easily be a billion dollar-plus field.
Qnexa is also being evaluated as a potential treatment for type II diabetes and obstructive sleep apnea. The trials are in mid-stage development so any positive news on this front will also help shares.
Vivus could also have a winner with its erectile dysfunction drug, Avanafil, which is currently in Phase 3 trials and could gain approval sometime over the next 3-6 months.
The 52-week high for Vivus is $13 which would get these call options to $3 if shares can challenge this level on positive developments.
We recommended buying the stock at $7.93 on 5/11/11 and for every 100 shares to sell the June 8 calls for 50 cents. This lowered the cost basis to $7.43.
If shares are called away by mid-June at $8 the trades makes 8% in less than 5 weeks.
AKS Steel Holding (AKS, $14.13, down $0.24)
May 16 calls (AKS110521C00016000, $0.00, down $0.02)
Original Entry Price: $15.93 (5/2/11)
Lowered Price from Selling Options: $15.43
Exit Target: $20+
Return: -8%
Stop Target: None
Action: The May options expired on Friday and we will be looking to sell another call option. However, we will wait until shares get back over $15 before we do.
Shares are right at support which was prior resistance (black line) but could be headed into a trading range of $13-$14 if this level doesn’t hold. We like this company as a takeover name and improving fundamentals so we don’t mind holding the stock for the next 6-12 months.
We recommended buying the stock at $15.93 on 5/2/11 and for every 100 shares to sell the May 16 calls for 50 cents. This lowered the cost basis to $15.43.
American Capital (ACAS, $9.82, down $0.26)
June 10 calls (ACAS110618C00010000, $0.30, down $0.10)
Original Entry Price: $9.73 (4/19/11)
Lowered Price from Selling Options: $9.23
Exit Target: $15+
Return: 6%
Stop Target: None
Action: Shares appear to be headed back to a test of $9.50 which is strong support.
We recommended buying the stock at $9.73 on 4/19/11 and for every 100 shares to sell the June 10 call for 50 cents. This lowered the cost basis to $9.23.
If shares are called away by mid-June at $10 the trades makes 8%.
Rediff.com India (REDF, $11.11, up $0.24)
May 10 calls (REDF110521C00010000, $1.10, up $0.10)
Original Entry Price: $10.28 (4/19/11)
Lowered Price from Selling Options: $9.03
Exit Target: $15+
Return: 11%
Stop Target: None
Action: Rediff.com got called away from us as shares closed above $10 on Friday. The trade retuned 11% in a month. It appears as though $10 will be strong support going forward and we may look to get back into this trade over the next few weeks if this level holds.
We recommended buying the stock at $10.28 on 4/19/11 and for every 100 shares to sell the May 10 call for $1.25. This lowered the cost basis to $9.03.
Cisco Systems (CSCO, $16.53, down $0.13)
May 18 call (CSCO110521C00018000, $0.00, down $0.01)
July 16 calls (CSCO110716C00016000, $0.90, down $0.05)
Original Entry Price: $17.14 (3/17/11)
Lowered Price from Selling Options: $16.58
Exit Target: $20+
Return: 0%
Stop Target: None
Action: Cisco hit a 52-week low of $16.34 last week. The stock trades at just above 10x earnings and yields 1.4%. When there is a dividend payment, you will collect that as well to lower your cost basis since you own the stock.
The trading range we have been outlining since we initiated coverage of Cisco is back on after shares failed at resistance on a lousy earnings report.
The June 16 calls are at 75 cents and the July 16 calls are at 90 cents. If shares can trade higher this week, we will send out an alert as to which option to buy but it will probably be the July 16’s. However, we would like to get at least $1.25+ for them which means Cisco will need to rally back above $17. In the meantime, we will just wait it out.
We recommended buying the stock at $17.14 on 3/17/11 and for every 100 shares to sell the May 18 call for 56 cents. This lowered the cost basis to $16.58.
TiVo (TIVO, $9.47, down $0.01)
May 10 calls (TIVO110521C00009000, $0.00, down $0.05)
Original Entry Price: $8.80 (3/14/11)
Lowered Price from Selling Options: $7.06
Exit Target: $10+
Return: 34%
Stop Target: None
Action: TiVo reports earnings on Tuesday!!!
TiVo stayed under $10 so we were not called away on our May options. The June 10 calls are at 30 cents so we could sell those or close the trade and lock in profits. If we did sell the options, it would lower our cost basis to $6.76 and if shares were called away we would net nearly 50%. However, TiVo reports earnings on Tuesday so we will probably close the trade on Monday to lock in profits.
Shares are right in the middle or their trading range so TiVo could go either way depending on the news. If TiVo pulls back after the announcement then we can look at the situation and if shares continue higher, same deal. We will send out a Trade Alert on Monday when we officially close the trade. TiVo is a very risky stock to own due to litigation issues but the options have some nice premiums so we will be back one way or the other.
Shares opened at $8.79 on 3/14/11 and the April calls could have been sold for $1.00. This lowered the cost basis to $7.80.
On 4/18/11 we suggested selling the May 10 calls for 80-90 cents. The calls opened at 84 cents that day which lowered the cost basis to $7.06.
Spreadtrum Communications (SPRD, $19.46, up $0.08)
May 22.50 calls (SPRD110521C00022500, $0.00, down $0.05)
Entry Price: $23.45 (2/7/11)
Lowered Price from Selling Options: $21.48
Exit Target: $30
Return: -9%
Stop Target: None
Action: The May 22.50 call options expired worthless so we will look to sell another call once shares get back over $21-$22. There is strong support at $19.
Shares opened at $23.43 on 2/7/11 and the March calls could have been sold for 95 cents. This lowered the cost basis to $22.48.
On 4/11/11 we recommended selling the May 22.50 call option for $1.00 which lowered the cost basis to $21.48.
DryShips (DRYS, $3.82, down $0.06)
January 2012 7.50 call (DRYS120121C00007500, $0.10, flat)
Entry Price: $5.25 (1/03/11)
Lowered Price from Selling Options: $4.60
Exit Target: $8
Return: -17%
Stop Target: None
Action: Shares broke long-term support at $4 (black line) and could be heading to the $3.50 level (red line, black circle). The company recently reported decent results but Wall Street is shunning the stock.
DryShips opened at $5.37 on 1/3/11 and shares were at $5.25 shortly after the bell. The January call options could have been sold for 65 cents which lowered the cost basis to $4.60.
If shares are over $7.50 by January 2012, the stock will be “called away” and the trade will make over 60%.
Seattle Genetics (SGEN, $19.02, up $0.04)
June 17.50 calls (SGEN110618C00017500, $1.90, flat)
Entry Price: $15.50 (12/27/10)
Lowered Price from Selling Options: $13.85
Exit Target: $20
Return: 37%
Stop Target: None
Action: Seattle Genetics added another $1 for the week and hit new 52-week highs in the process. We said to watch for the breakout after the stock broke past resistance and are now in blue-sky territory.
We have told you about the company’s drug pipeline which has 2 possible applications currently being looked at by the FDA for approval but there is more to their story. The company also gets licensing fees from other drug makers who use their antibody-drug conjugate (ADC) technology which has brought in more than $145 million so far.
We have been saying shares are headed to $20+ (red circle) in 6-12 months but we might have to lower that outlook to next week. Either way, we are likely to get called away in mid-June as resistance is now strong support should shares lose their momentum. (Note: We also have an ongoing trade in our Daily newsletter for Seattle Genetics that is up 53%).
Seattle Genetics opened at $15.80 and shares were at $15.50 at 10am on 2/27/10. The March 17.50 call option could have been sold for 90 cents. This lowered the cost basis to $14.60.
On 4/4/11, the June calls could have been sold for 75 cents which lowered the cost basis to $13.85. If shares are called away at $17.50 in mid-June the trade will make 26%.
Dendreon (DNDN, $38.98, up $0.45)
May 43 calls (DNDN110521C00043000, $0.00, down $0.01)
Entry Price: $41.96 (9/13/10)
Lowered Price from Selling Options: $36.61
Exit Target: $45
Return: 6%
Stop Target: None
Action: The May 43 calls expired worthless. We will be looking to sell a June or July option on Dendreon once shares get back over $40. Our cost basis is $36.61 and the June 40’s are selling for $1.25 which would lower our cost basis to $35.36. However, we feel it’s best to wait for a run back above $40.
We are looking for the stock to hold a trading range of between $38 (black line, prior resistance, now support) to $42 (resistance) before the next big pop higher.
Dendreon opened at $41.96 and you could have sold the October 45 call option for $1.30 on 9/13/10. This lowered the cost basis to $40.66.
On 11/11/10 we sold the December 40 call option for $1.75 which lowered our cost basis to $38.91.
On 12/20/10 we sold the February 39 call option for $1.50 which lowered our cost basis to $37.41.
On 4/11/11 we recommended selling the May 43 call options for 80 cents. This lowered the cost basis to $36.61.
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6. Week Ahead
There is no economic news scheduled for Monday.
On Tuesday, we get an update on New Home Sales just after the open. The housing market was supposed to be turning a corner this spring but it doesn’t appear to be happening.
Before the bell on Wednesday, the MBA Mortgage Index is due out along with Durable Goods Orders for April which are pretty important and will likely impact futures. The report is considered a leading indicator of manufacturing activity so Wall Street will be looking for good news. After the open, the FHFA Housing Price numbers will be released along with the weekly crude inventory report.
For Thursday, we get a look at the latest Gross Domestic Product (GDP) numbers along with Initial Claims and Continuing Claims which came in better-than-expected last week.
Friday will be busy ahead of the long 3-day weekend as the market will be closed next Monday for Memorial Day. Before the open, we get the latest numbers on Personal Income and Personal Spending. Shortly after, the market will get the Michigan Sentiment numbers as well as Pending Home Sales.
With earnings winding down, the market will likely focus on economic and geopolitical news over the next month before turning its attention to 2Q earnings which starts the second week of July.]]>