Stocks Point Focus on Obama and Fed Earnings

Now that Wall Street is right smack in the middle of a free fall in earnings, a lot of investors will then turn their eye on any type of moves coming from the White House in the following week in order to revive the banks and therefore craft out a recovery plan which will then salvage the ailing economy from the slump caused by the recession which started last year.

Addressing Problems of the Fed and the Market

Additionally, investors will then tune in and focus their attention on the Federal Open Market Committee as they make their statement based on the meetings on Tuesday and Wednesday to asses any clues that might help the Federal Reserve find solutions for such problems they currently face. IN the coming week, around one hundred and thirty seven companies in the roster of S&P 500 as well as 12 Dow components shall report their own earnings. This will be be the weakest ever report that has come out of the negative growth occurring for six quarter weeks now. In particular, many banks will then be put in the spotlight as President Barack H. Obama along with his team of economic advisers meet this Saturday. The meeting is expected to fuel hopes that this new American administration will be able to put together a recovery plan to save the ailing sector of banking.

Recovery Plan In Process

The eight hundred and twenty five billion economic recovery plan that is being crafted in the State shall have its progress closely monitored by all. Last Friday, newly-sworn in President Barack H. Obama had urged all lawmakers to come up with swift actions. He continued by saying that the country  is currently expecting a relief plan in order to emerge from this unexpected financial and economic crisis. Michael Sheldon, who is the chief market strategist from the Financial company RDM Financial (based in Westport Connecticut), says that for many investors, there is so much riding on this upcoming stimulus plan. Recent data on the sale of homes reveal that more jobless claims have been made, as well as readings on the fourth quarter figures of United States gross domestic products. The next week will be critical because such will be the time when people will be able to confirm Obama's viewpoint on matters concerning the United States economy and the recession. Then again, the path to this is far from being smooth. The economic stimulus recovery plan will proceed with much caution, according to Craig Peckham, who is an equity trading strategist who is from the New-York based company Jefferies & Co.

More Gloomy Earning Reports

Even McDonald's is not spared, as well as Verizon. They will offer their own readings on the topic of consumer spending. More results from Caterpillar company and DuPont shall be able to provide some clues regarding their strength of investment spending.