Stock Market: Looking Forward to Next Week !

The Dow finished higher every day this past week, ending the week at 12092, up 2.3% and at their higher level since June 2008. The S&P 500 , up 4 days out of 5, added 2.7% for the week to 1311, and the Nasdaq  ended the week up 3.1% to 2769.

In a word, amazing , given how many people believe the market is about to stage a major pullback.

Earning will drive the market

Next week is fat on earnings,  and that’s what the market will trade on, assuming Egype doesn’t spiral out of control. It’s fairly light on important economic reports. Here’s how the week shapes.

Monday: Humana(HUM), Imperal Sugar, HAS, SYY.

Tuesday: Toyota(TM), Belo(BLO) and Disney.

Wednesday: Coca-Cola, Allstate(ALL), and Cisco Systems(CSCO).

Thursday: Kraft Foods(KFT) and Cheesecake Factory(CAKE). 

Friday: Discovery Holdings (DISCA) and Pilgrim’s Pride(PPC).

There are some factors that are giving stocks a reason to move higher and should be on display next week. One is that consumers are gaining confidence in the economy and are increasingly willing to spend – to the benefit of  Walt Disney (DIS) and Polo Ralph Lauren(RL).

Another is that Industrial America is alive and Investing.

A third is that global growth means rising prices for commodities, to the benefit of such companies as Imperial Sugar (IPSU).

The down side of rising commodity prices is that others will face challenges. We’re talking Coca-Cola(KO), Molson Coors(TAP) and Penera Bread (PNRA).

 A Quick Week For the Economic Reports

The week following the report on payroll employment and unemployment is always light on market-moving events. 

The Federal Reserve's Consumer Credit report on Monday will measure whether consumers are willing to take on much debt. That will dovetail with the University of Michigan's first cut of consumer confidence in February.  That report comes out Friday. 

Fed Chairman Ben Bernanke will testify before the new House Budget Committee on Thursday. The Fed is not expected to change its tune on its policy orientation, as Bernanke indicated in his recent news conference. Indeed, the recent readings on the employment market have been somewhat ambiguous.