Good news is plentiful in the market these days. The S&P
500 is in the middle of an eight-day winning streak, it's longest
since 2004. With last week's gains, the S&P 500 and the Dow
Jones Industrial Average are now residing at their best levels
since 2007. A fairly docile market environment chock full of
solid economic and earnings report has triggered the flight to
To this point, nearly 150 S&P 500 companies have reported
earnings and roughly three-quarters of them have topped Wall
Street estimates. Obviously, that is a trend the bulls will hope
continues this week as they look to keep the bears in
It is possible. The week ahead is loaded with marquee earnings
reports. Caterpillar (NYSE:
), Amazon (NASDAQ:
), Exxon Mobil (NYSE:
) and Chevron (NYSE:
) among them. Additionally, this will be a week heavy on
important economic reports. Among others, the Commerce Department
will deliver its final reading on fourth-quarter U.S. GDP and the
Labor Department will unveil the January jobs number on Friday.
Traders will want to keep an eye on the following
in what is shaping up to be exciting week.
Energy Select Sector SPDR (NYSE:
) Alone, Friday has the potential to be a big day for XLE, the
largest equity-based energy ETF by assets. Not only is that
non-farm payrolls day, but it is also day heavy on energy sector
earnings. Exxon Mobil, Chevron and National Oilwell Varco (NYSE:
) all report that day and those stocks combine for 36 percent of
Leading up to those reports, several smaller oil services
names also step into the earnings confessional as do
) on Wednesday and Occidental Petroleum (NYSE:
) on Thursday. Those two stocks are also top-10 holdings in XLE.
With an 8.2 percent gain in the past month, XLE is trading at its
best levels since 2011.
Market Vectors Coal ETF (NYSE:
) Traders will get some clues about KOL's near-term fortunes as
soon as Monday when Caterpillar reports earnings. Caterpillar is
not a KOL holding, but the company is the world's largest maker
of mining equipment meaning any guidance and backlog data the Dow
component provides can be viewed as a tell on what is happening
with coal miners.
Speaking of coal miners, Peabody Energy (NYSE:
), the largest U.S. coal producer, and Consol Energy (NYSE:
) both report this week. Those stocks combine for 13.5 percent of
KOL's weight. This could be an important week for KOL. The ETF
has not really participated in recent market upside (it lost
almost two percent last week) and is in danger of falling below
its 200-day moving average, a signal that technical analysts view
Guggenheim Solar ETF (NYSE:
) One of the year's top-performing sector funds, the Guggenheim
Solar ETF has benefited from the Chinese government doing all
that it can to help its ailing solar companies. Reserving
criticism of China playing savior and overreaction to
to Warren Buffett getting involved with the
for another day, it is still worth noting the solar rally looks a
Holdings such as LDK (NYSE:
) and SunTech Power (NYSE:
) have doubled in the past month and while that is nice, there
are signs that this rally is unsustainable, not the least of
which is the fact that TAN closed lower last week as the broader
market moved higher.
Also worth remembering is an overlooked fact when solar stocks
are moving higher: Solar power is a commodity. As in power
providers have alternatives in the form of coal and natural gas.
Problem for solar stocks is that unsubsidized solar is still
pricier in many markets than traditional sources of electricity
generation, implying that this is still a fundamentally flawed
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