Politics Vs. Finance

I hope everyone had a happy Thanksgiving. The early reports show that holiday shopping was strong over the weekend. Honestly, the Black Friday stuff is very overrated (it’s not that big a driver of business), but it’s nice to see retail looking up.

This looks to be a rather eventful week for the stock market. What happened in America in September 2008 seems to be happening now in Ireland and Portugal and Spain and well…all of Europe basically.

Tyler Cowen writes:

In a nutshell, we’re watching the most pitched, highest-stakes, most determined battle between politics and finance which has been staged. I am expecting finance to win. It’s not just about PIGS and the future of the eurozone, it’s settling a very general question about the relative power of politics and finance. Either way, it is an event of momentous importance.

I think he’s right: Finance will win.

One of our Buy List stocks, JoS. A. Bank Clothiers (JOSB) has said that it will have a conference call this Thursday at 11 am to discuss its third-quarter earnings report. That should mean that the earnings report will come out after the closing bell on Wednesday.

Wall Street currently expects Q3 earnings of 50 cents per share. I really like JOSB and I’m expecting a big beat from them. They made 42 cents per share for last year’s Q3 and I think they could easily make as much as 57 cents per share. I know that sounds very optimistic, but that’s how strong I think this stock is.

The other news to keep an eye on is the Chicago PIM which comes out tomorrow. The Big ISM report will come out at 10 am on Wednesday. I think a “boring” number like 54 or 55 will be very good news for the economy. It will mean that the economy is still plowing along, albeit slowly.

The Fed’s Beige Book comes also comes out on Wednesday. Finally, Friday brings the all-important jobs report. Maybe…finally, we’ll see some real improvements in the labor market, but I’m not going to celebrate until I see proof.

Posted by on November 29th, 2010 at 9:08 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.