Wall Street: All eyes on the banks - 期貨

Wall Street: All eyes on the banks

The Dow and S&P 500 are hovering near 1997 levels as investors look for
reassurance that banks can stay afloat and the stimulus plan will work.

By Alexandra Twin, CNNMoney.com senior writer
Last Updated: February 22, 2009: 11:16 AM ET


NEW YORK (CNNMoney.com) -- All eyes will be on Washington and the banking
system this week, right where they've been for months.

The market is likely to take its cue this week from the government and the
direction of financial stocks. Reports -- expected to be bearish -- on
housing, manufacturing, employment and GDP growth will also be of interest.

Bank stocks and the broader market have been tumbling for the last two weeks,
since the U.S. Treasury unveiled a bank bailout plan that was short on
specifics. Questions about the ability of the banks to stay afloat amid the
14-month-old and counting recession are what is "overhanging the markets
right now, more than anything else," said Timothy Ghriskey, chief investment
strategist at Solaris Asset Management.

Worries that the government will have to nationalize, or take over struggling
banks pummeled stocks last week. At the same time, investors have grown
increasingly worried that Washington's other rescue plans won't be able to
slow the recession.

While the Dow and S&P 500 managed to crawl back from nearly 11-year lows
Friday, the mood on Wall Street hasn't improved.

"Washington has become the financial capital of America and that does not
make investors happy," said Kim Caughey, senior equity analyst at Fort Pitt
Capital Group.

Last week, President Obama signed into law the $787 billion economic stimulus
package and also announced a $75 billion home loan modification plan. But
investors, perhaps suffering from bailout fatigue, showed little reaction.

In addition to the economic reports, the week ahead brings testimony from
Federal Reserve Chairman Ben Bernanke, a congressional address from President
Barack Obama and House hearings on the various rescue plans that the
government has put in place. More specifics regarding the plans would go a
long way toward soothing Wall Street's worries.

Economy
Tuesday: The S&P/CaseShiller Home Price index, due before the market open, is
expected to have fallen at a record 18.25% annual pace in December, according
to a consensus of economists surveyed by Briefing.com. The index tracks home
prices in 20 major metropolitan areas.

Also Tuesday, the Conference Board's February Consumer Confidence index is
expected to have fallen to 36.0 from 37.7 in January. That reading would be
the lowest since the Conference Board began tracking the index in 1967.

Wednesday: January existing home sales are due to be released shortly after
the start of trading. Sales are expected to have risen to a 4.81 million unit
rate from a 4.74 million unit rate in December.

Thursday: January new home sales are expected after the market open. Sales
are forecast to have dipped to a 329,000 annual unit rate from a 331,000
annual unit rate in December.

January durable goods orders are expected to have fallen 2.3% after falling
2.6% in December. The weekly jobless claims report is also due Thursday.

Friday: Fourth-quarter gross domestic product growth (GDP) is expected to
have been revised lower. GDP likely fell at an annual rate of 5.4% versus the
initially reported decline of 3.8%.

The Chicago PMI, a regional read on manufacturing, is due after the market
open. The index is expected to have risen to 34 in February from 33.3 in
January. Any figure below 50 signals weakness in the sector.

Earnings
Tuesday morning: Home Depot (HD, Fortune 500) is expected to have earned 15
cents per share versus 40 cents a year ago. Target (TGT, Fortune 500) is
expected to have earned 83 cents versus $1.23 a year ago.

Thursday evening: Dell (DELL, Fortune 500) is expected to have earned 27
cents per share versus 31 cents a year ago. Gap is expected to have earned 32
cents versus 35 cents a year ago.

Washington, D.C.
Tuesday: President Obama addresses the joint session of Congress.

Also Tuesday, there are House Financial Services subcommittee hearings on the
home loan modification program and oversight of the bank bailout.

Tuesday and Wednesday: Federal Reserve Chairman Ben Bernanke gives his
semi-annual testimony before Congress regarding monetary policy. On Tuesday,
he speaks at a Senate Banking Committee hearing and on Wednesday at a House
Financial Services Committee hearing.

First Published: February 22, 2009: 10:22 AM ET

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