If the old saying on Wall Street “as January goes, so does the rest of the year” holds true, investors ought to be in good shape in 2013, as the S&P 500 logged its second week of gains, rising 0.4% last week for a YTD gain of 3.22%. As earnings season kicks into high gear this week, expect more volatility.
The trade: Buy on dips and sell-offs — economic and earnings reports are likely to surprise on the upside, take advantage of the volatility.
This week’s market-moving events:
- Monday: No meaningful reports. However, Dennis Lockhart speaks at 12:30 and Ben Bernanke speaks at 4:30 PM.
- Tuesday: Homebuilder Lennar LEN -0.17% reports earnings, though investors will likely focus on a slew of economic reports, including: PPI, Retail Sales and Empire State Manufacturing reports all set to be released at 8:30AM.
- Wednesday: Industrial Production and CPI data will be released at 8:30, and housing prices at 10:00 AM. Major financials, including JP Morgan JPM -0.02% , Goldman Sachs GS -0.17% report earnings, as will eBay.
- Thursday: Housing Starts and Jobless Claims are released at 8:30, while the Philly Fed Survey reports at 10:00 AM. For those of you who didn’t get enough of Dennis Lockhart on Monday, he speaks again at noon today. B of A BAC -1.27% , Blackrock BLK +1.03% , Citigroup C -1.14% , Intel INTC +0.92% and Sunoco are among widely-held stocks that report earnings today
- Friday: Consumer Sentiment data is released before the market open, while GE GE -0.19% , Morgan Stanley MS -0.84% and Schlumberger SLB +0.68% close out a busy earnings reporting week.