Newman Dignan & Sheerar, Inc.

Registered Investment Advisors

01.24.12

This week will have some important economic data releases, as well as a slew of earnings reports.

Housing numbers [will the bottoming process continue?] and the Fed’s meeting [they’re expected to keep fed funds rate next to zero] will be out on the 25^th.

Unemployment [don’t forget to monitor the drop-out rate], durable goods orders, and leading indicators will be out on the 26^th.  We will also get the preliminary look at 4Q2011 GDP.

Earnings reports will also power markets this week. Early reporters have produced mixed results, with technology strong, while many banks reported less-than-expected results.  Apple, the Big Kahuna, will be reporting Tuesday evening.

The conventional wisdom prevalent at the start of the year was for a difficult first half followed by a more rewarding second half of 2012.   This was an extrapolation of the Eurozone panic which impacted the second half of 2011.  However, since then fears have subsided [at least for now] and the markets have advanced.

The market has actually gotten off to a great start this year, with the DJIA’s 4.1% increase the smallest of the major indices [the Nasdaq is up 7%].  There may be a tad “too much” optimism in today’s market, but this is a presidential election year, which tends to [unrealistically?] boost the country’s outlook.

Stay tuned.

“Perpetual optimism is a force multiplier.”
- Colin Powell