October 11, 2010

Earnings, Inflation, the Fed and FPA: Advisor Briefing for the Week of October 11, 2010

Third quarter earnings reports begin in earnest this week, while other likely market movers include release of the FOMC minutes, producer and consumer prices, and at week’s end Treasury reports on economic and exchange rate policies. The annual FPA conference begins to wind down before closing on Tuesday, and, oh yes, the political season is in high season as evidenced by the spate this week of televised candidates’ debates across the nation. Enjoy.

Monday, Oct. 11 is Columbus Day, a federal holiday, so the bond markets are closed, though the stock markets are open. The Chinese currency rose Monday following comments over the weekend at the IMF meeting in Washington by Zhou Xiaochuan, governor of China’s central bank, that the yuan could be allowed to appreciate if conditions were right

FPA Denver 2010 hits its stride as the FPA leadership holds a press conference on Monday and keynoter Ian Bremmer speaks about managing risk in an unstable world.

Prior on-site reporting from the annual FPA conference included articles on behavioral economist Dan Ariely, implementation of Dodd-Frank, and the opening general session where Tim Kochis was given the P. Kemp Fain Jr. award.

On Tuesday, Oct. 12, the Fed’s Open Market Committee releases minutes of its September meeting, while the FPA annual meeting’s 2,400 attendees head home.

The Treasury Department on Wednesday, Oct. 13, releases its report on the federal budget deficit, but third-quarter earnings results are due from JPMorgan Chase.

If it’s Thursday, it must be the release of weekly first-time unemployment claims, but for once the report may be overshadowed on Oct. 14 by the September producer price index (PPI), along with the U.S. trade deficit for August and release of the Fed’s balance sheet.

Friday, Oct. 15, brings an assessment of inflation with the Labor Department’s CPI numbers for September and retail sales numbers for September, the Treasury Dept.’s release of its seminannual report to Congress on economic and exchange rate policies, and the Reuters/University of Michigan consumer sentiment report for October. Third-quarter earnings results are scheduled from Charles Schwab.

Mike Durbin of Fidelity says the major custodians are in a technology “arms race,” and in our Weekend Interview, Neesha Hathi of Schwab Advisor Services revealed the biggest custodian’s tech strategy. You may also want to read this report on Apple’s iPad’s applications for business.

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