Please ensure Javascript is enabled for purposes of website accessibility

What Investors Will Be Watching Going Forward

By Austin Smith – Updated Apr 7, 2017 at 8:25PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A look back and a look forward before the market opens today.

Yesterday, all of the major indices closed the day in the green, recovering nicely from their early morning dips.

Index

Gain / Loss

Gain / Loss %

Ending Value

Dow Jones Industrial Average (INDEX: ^DJI ) +32.77 +0.27% 12,393
S&P 500 (INDEX: ^GSPC) +2.89 +0.23% 1,281
Nasdaq (INDEX: ^IXIC ) +2.34 +0.09% 2,677

Big news to follow up on
Though investors were probably hoping that Europe's woes solved themselves overnight and we could just get back to good old-fashioned growth again, that is not the case. German Chancellor Angela Merkel and French President Nicolas Sarkozy met yesterday to discuss creating a plan to save the ailing euro over the next three months. The euro has been in a steady plunge against most major currencies lately and is in desperate need of a rescue line.

Merkel and Sarkozy are pressing for a swift solution to the Greek debt crisis, or else the ailing economy will get no more bailout funds.

Fresh news to watch
The wholesale trade report, coming from the Census Bureau of the Department of Commerce at 10:00am today, will release sales and inventory statistics from the second stage of the manufacturing process. It's important to note that personal consumption is not discussed in the report, and it is therefore unlikely to move the market for the day.

However, that doesn't mean it's not worth watching. If wholesale inventories move dramatically enough, it can alter GDP outlook. With many people estimating the fourth-quarter 2012 U.S. growth to be a paltry 3%, it's something to consider.

Will they feast or famine?
Earnings season kicked off with a revenue beat but earnings miss by Alcoa (NYSE: AA) yesterday. The company posted a loss of $0.03 a share but recorded revenue up 6%. It also announced it will close 12% of its smelters.

Next up on the earnings train will be JPMorgan Chase (NYSE: JPM), releasing on Jan. 13. Analysts are estimating earnings of $0.93 per share and have a mean target price of $46.24. This gives a fair amount of upside from the current share price of $35.30. JPMorgan is priced pretty cheap now, with a P/E of 7.5, but there are concerns that continued softness in the finance sector will be manifested in a weak top line. Many investors will be watching this release and use it as a proxy for the other financial institutions' performance.

The better approach
Trying to time earnings releases is exciting and gut-wrenching, but it can be stressful. If you'd rather pick up a great company to buy for the long term and forget about short-term performance, The Motley Fool has created a brand-new free report: "The Motley Fool's Top Stock for 2012." It features a company that's hand-selected by the Fool's chief investment officer and has a strong future ahead of it. I invite you to take a copy, free for a limited time. Get access to the report and find out the name of this legendary company. The report is free, but won't be forever, so check it out today!

Austin Smith owns no shares of the companies mentioned here. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JPMorgan Chase & Co. Stock Quote
JPMorgan Chase & Co.
JPM
$109.14 (-1.86%) $-2.07
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$29,590.41 (-1.62%) $-486.27
Alcoa Inc. Stock Quote
Alcoa Inc.
AA
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$10,867.93 (-1.80%) $-198.88
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$3,693.23 (-1.72%) $-64.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.