Sunday, September 21, 2014

Week Ahead Magazine: September 21, 2014

A fairly eventful week last week with the Fed's policy decision essentially leaving rates unchanged and retaining the "considerable time" language in its rate announcement. Alibaba's (BABA) IPO was one for the record books in terms of size. Before investors jump in to buy the stock they should read Aswath Damodaran's commentary on the corporate structure of BABA. With those two items now in the rear-view mirror, the market managed to generate mostly positive returns last week. The one segment of the market having trouble gaining any upward traction is small cap stocks. On the week the Russell 2000 small cap index was down 1.2% and now is down 1.4% on the year. The other broad U.S. indices have generated near double digit returns year to date. The one large cap laggard is the Dow Jones Industrial Average which is up 4.2%.

For the week ahead, a number of economic reports are on the calendar:
  • Existing home sales (M)
  • New home sales (W)
  • Durable goods orders, and jobless claims (Th)
  • Second quarter GDP final reading (F)
A number of additional reports will be reported in the coming week, but those noted above are likely to be the most impactful to the markets. This week's magazine contains an assortment of articles readers may find of interest.

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