Week Ahead Market Report: 5/24/2010
Monday, May 24, 10:59 AM ET

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Good morning, I’m KRISTIN BIANCO, with the “Week Ahead Market Report” for May 24, 2010.

In overseas equity markets this morning, the Hong Kong’s Hang Seng index rose 0.6 percent. Japan’s Nikkei 225 edged lower 0.3 percent and China’s Shanghai Shenzen surged higher by 3.8 percent.

The German DAX dropped almost 1 percent. Britain’s Footsie 100 edged lower by 0.3 percent.

U.S. S&P index futures were trading lower in Monday’s pre-market action, down 0.9 percent.

Crude oil traded flat at just under $70 a barrel this morning.

Gold edged higher on Monday morning by about 0.7 percent, trading at just over $1,185 an ounce.

The Bank of Spain took control of a regional bank on Saturday. This action underlines sovereign debt risks in Europe and the rising potential for a negative impact on economic growth. In response, the euro sank against most major currencies over the weekend after moving higher last week as the German Parliament approved a rescue package for debt laden European countries. The euro dropped 1.5 percent against the U.S. dollar over the weekend.

On the economic front, housing data will take focus for the week. On Monday, existing home sales are expected to rise from an annualized rate of 5.35 million in March to a 5.6 million rate for April.

The Case-Shiller home price index data for March will be released on Tuesday. It was up 0.6 percent in February.

On Wednesday, new home sales data for April will be released with economists expecting 425,000 sales for the month.

On the earnings front, 118 firms will post profits, led by Canadian banks and retailers.

Medical device manufacturer Medtronic (NYSE:MDT) will report before the market opens on Tuesday. Analysts are expecting first quarter profits of 88 cents per share.

On Wednesday before the market opens, American Eagle Outfitters (NYSE:AEO) is expected to report 17 cents per share in first quarter earnings.

Dress Barn (DBRN) will also report earnings on Wednesday after the market closes with Wall Street expecting earnings of 56 cents per share.

Bank of Montreal (NYSE:BMO) will post earnings on Wednesday as well. The consensus estimate for the company is $1.07 per share.

On Thursday, Royal Bank of Canada (NYSE:RBC) will report earnings with analysts expecting $1.09 per share.

Toronto Dominion Bank (NYSE:TD) is scheduled to post profits on Thursday before the market opens, with analysts forecasting $1.42 per share.

On Thursday before the market opens, discount retailer Costco (NASDAQ:COST) will post profits. Analysts are expecting earnings of 66 cents per share.

Deep water oil driller Seadrill Limited (NYSE:SDRL) will also report earnings on Thursday morning with expectations of 63 cents per share.

Join us on Friday for the “Weekly Market Wrap” and have a wonderful week.