Stocks face choppy seas of bank woes, uncertainty
Fri, May 11, 2012
Major retailers set to report earnings next week include Home Depot (HD), a Dow component, and JC Penney Co. (JCP), both on Tuesday, followed by Limited Brands (LTD), parent of Victoria's Secret, and discount chain Target Corp (TGT) on Wednesday. Wal-Mart Stores, Inc (WMT), the world's largest retailer and a Dow component, is set to report earnings on Thursday before the opening bell.
The week's mostly closely watched economic indicators will include the U.S. Consumer Price Index and retail sales, both for April, on Tuesday, followed by April housing starts and April, industrial output and capacity utilization, all on Wednesday.
In Europe, problems with the Greek elections raised the risk of it exiting the euro zone.
BEARISH PATTERN
Technical charts indicate bearishness ahead.
"My 'bigger picture' view is that in the near or intermediate term, further downside is favored," said Chris Burba, short-term market technician at Standard & Poor's in New York.
S&P 500 charts are showing a "head-and-shoulders top," he said, noting that demand earlier this month was not strong enough to push the benchmark index above its April high.
He sees support just below 1,300, while resistance could come at 1,415 for the S&P 500.
"The outlook stays bearish unless you get above 1,415," Burba said.
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