A better-than-expected housing market report tempered worries about the economic outlook. FedEx’s earnings and outlook gave the market some buoyancy. Industrials and consumer discretionary led the S&P 500 higher Monday. Tech stocks started the week off strong Monday, with many bellwethers gaining ground. Market breadth was positive. Trading volume was light – investors prefer to remain on the sidelines amid uncertainty over whether stocks will hold recent gains or if the global economy’s recovery effort is strong enough to warrant those gains in the first place.
Advancing Sectors: Industrials (+1.7%), Financials (+1.6%), Telecom (+1.5%), Consumer Discretionary (+1.5%), Health Care (+1.4%), Energy (+1.1%), Utilities (+0.7%), Tech (+0.6%), Materials (+0.5%), Consumer Staples (+0.4%)
Declining Sectors: None;

FEAR METER: The S&P500 implied volatility fell amid glimmers of economic hope.
IN FOCUS: BP (BP), Lexmark (LXK), Broadcom (BRCM) all make reports on Tuesday.

Stocks managed to climb higher last week as investors welcomed better-than-expected results from UPS (UPS), Microsoft (MSFT), American Express (AXP) and others. The overall impression was encouraging — most companies have topped expectations, though revenue hasn’t been as robust as many analysts had hoped. Tech stocks ended up with several sector leaders cutting losses as the sector rallied with the broad market following results of stress tests of European banks. Microsoft (MSFT) beat analyst estimates with its after-the-bell report Thursday but the stock fell Friday. There were companies that disappointed, such as Amazon.com (AMZN), shares lost 1%.

FEAR METER: The S&P500 implied volatility lost more than 10 percent, closing out the week below 24.
IN FOCUS: On the economic front this week, reports are due on housing, GDP, consumer confidence and the jobs market. New home sales index is due after the start of trading.

Better-than-expected forecasts helped reassure investors about the pace of the economic recovery. After the close, Microsoft reported higher quarterly sales and earnings that topped estimates, thanks to strong sales of its Windows 7 and a better PC market. Shares were little changed after the close. Amazon reported strong earnings, but missed estimates.

FEAR METER: The S&P 500 implied volatility inched lower as market fears faded away.

Bernanke’s comments sent the stock market to a sharp loss. Stocks found a little momentum Tuesday amid speculation that the Federal Reserve may take more steps to encourage bank lending. But that failed to transfer to Wednesday’s trading despite a number of improved earnings. Stocks had struggled all day as Morgan Stanley and Apple gave the market a boost this morning but weakness in techs and retailers dragged on the market. EBAY topped estimates, reported higher quarterly sales and earnings, thanks to strength at its PayPal. Shares gained 3% in after-hours trading. Coca Cola (KO) also bested earnings expectations, shares held their gain into the close, up 1.6%.
FEAR METER: The S&P500 implied volatility surged on recovery worries and in response to Fed’s comments.
Advancing Sectors: None;
Declining Sectors: Financials (-1.8%), Consumer Discretionary (-1.8%), Health Care (-1.5%), Utilities (-1.4%), Tech (-1.4%), Energy (-1.4%), Consumer Staples (-1.0%), Industrials (-0.4%), Materials (-0.4%), Telecom (-0.2%);

IN FOCUS: Earnings reports are expected from AT&T, Caterpillar, 3M, UPS, Amazon.com, American Express and Microsoft; weekly jobless claims; existing-home sales; leading indicators;

Stocks had been lower for much of the day amid revenue weakness in the latest round of earnings reports and another disappointing housing report. Materials, energy and industrials were the day’s best performers. Apple (APPL) reported its best quarterly results due to strong Macintosh sales and strong demand for its iPad device. JNJ fell 1.66% after the health-care giant reported a increase in earnings but flat revenue. Techs ended mixed after disappointing earnings late Monday from IBM and TXN. Consumer staples were some of the day’s best performers after Pepsi (PEP) beat analysts’ expectations with its latest earnings report, helped by the recent acquisition of its North American bottlers.
FEAR METER: The S&P500 implied volatility closed lower as investors looked forward to earnings from Apple.

Advancing Sectors: Materials; Energy. Industrials, Consumer Discretionary, Consumer Staples, Financials, Utilities, Tech, Telecom;
Declining Sectors: Health Care;
IN FOCUS: Notable companies reporting earnings today: Morgan Stanley, Coca-Cola, United Technologies, Wells Fargo, USBancorp,Qualcomm and Starbucks. Weekly mortgage applications; weekly crude inventories;

Markets opened higher as optimism about corporate results due this week outweighed ongoing concerns about the economy. More than two-thirds of the Dow components finished higher, led by Intel, Boeing and Alcoa. A stronger-than-expected earnings report from Halliburton (HAL) sparked buying in the energy space. Techs gained ahead of some key earnings from the sector this week. IBM beat analysts’ expectations, but sank 5% as second-quarter revenue fell short of the mark. Analysts think the market is bound to grow and investors should take advantage of the low valuations. Trading volume was light. A homebuilder confidence fell to a 15-year low in July, raising concerns about other housing reports due later this week.
FEAR METER: The S&P500 implied volatility closed lower for the first time in five sessions amid optimism about corporate results.
IN FOCUS: Reports on housing starts and building permits Tuesday morning. Earnings from Goldman Sachs, Pepsi, Apple and yahoo.

Advancing Sectors: Consumer Discretionary, Energy, Healthcare, Materials, Industrials, Telecommunications, Utilities, Information Technology, Financials, Consumer Staples;
Declining Sectors: None;

Disappointing revenue results from Bank of America(BAC), Citigroup(C) and General Electric(GE) dragged on stocks at the end of last week, overshadowing better results earlier in the week from Alcoa(AA) and Intel(INTC). The materials sector is expected to post the best year-over-year growth, with a forecast gain of 90%. Energy is second best, with expected growth of 74% versus a year ago. Tech is third and is expected to see growth of 59% year-over-year. On the downside, the utilities sector is forecast to see profits fall 5% from a year ago. Consumer optimism appeared to drift to its lowest point in nearly a year, to 66.5 in mid-July.
FEAR METER: The S&P500 implied volatility turned higher amid disappointment in earnings and economic news.

IN FOCUS: This week brings a spate of housing market reports. Following Monday’s close, IBM and Texas Instruments(TXN) release their numbers.

The market erased bigger losses after weaker-than-expected economic reports thanks to a late-session advance in financial and commodity shares. After the close, Google reported quarterly earnings that missed forecasts on revenue that beat estimates, sending shares 4% lower after-hours. Apple has called a special media conference today to address the problems besetting its iPhone 4. Earnings for the S&P 500 are expected to have risen 28% versus a year ago, according to the latest from earnings tracker Thomson Reuters.

FEAR METER: The S&P 500 implied volatility little changed after upswing in early trading.

Intel’s earnings strength renewed optimism about corporate results but meeting minutes from the Fed raised concerns about the economy. A dour report on retail sales and a big drop in mortgage applications also weighed on the market. However, technology shares bucked the trend. Google is scheduled to report quarterly results after the market closes today.

FEAR METER: The S&P 500 implied volatility little changed.

Stocks surged on Alcoa’s better-than-expected report and a well-received Greek auction. After the close, Intel topped expectations. Semiconductor sector rallied ahead of Intel results. In the day’s economic news, the trade balance widened. Breadth was positive and volume was fairly light. Whether the rally is sustainable will depend on the earnings forecasts and continued news out of Europe in the upcoming weeks. Experts are also concerned that bullish momentum may be fading as trading volume continues to slide.
FEAR METER: The S&P500 implied volatility fell more than 4 percent as bullish momentum prevails.
IN FOCUS: Government report on retail sales; import/export prices; business inventories;

Advancing Sectors: Financials (+2.6%), Consumer Discretionary (+2.5%), Materials (+2.2%), Industrials (+1.9%), Tech (+1.4%), Energy, Telecom, Consumer Staples, Health Care, Utilities;
Declining Sectors: None;