There's an old adage on Wall Street: "Sell in May and go away." Whether this saying proves to be wise could hinge on key economic data released this week, including Friday's jobs report.
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Monday, May 1:
PERSONAL SPENDING: Late last week, the Commerce Department released its preliminary estimate of first-quarter economic growth. Today, it will follow that up with a report on personal spending and income growth in the first three months of this year.
EARNINGS TO WATCH: Humana, Principal Financial Group, and Tyson Foods
Tuesday, May 2:
AUTO SALES: The Big Three automakers are expected to release April sales data today. With interest rates and gasoline prices on the rise, don't hold your breath for good news.
EARNINGS TO WATCH: Archer Daniels Midland, Credit Suisse Group, Electronic Data Systems, and Hilton Hotels
Wednesday, May 3:
MANUFACTURING INDEX: The Institute for Supply Management will release the latest results of its closely followed manufacturing index, which tracks factory activity nationwide.
EARNINGS TO WATCH: Alltel, Barrick Gold, Cigna, Clear Channel Communications, Clorox, Deutsche Bank, Procter & Gamble, Qwest Communications, Starbucks, Sunoco, and Time Warner
Thursday, May 4:
PRODUCTIVITY: One reason inflation hasn't become a bigger problem so far, despite record oil prices, is that worker productivity continues to improve. This morning, the Commerce Department will release its preliminary estimate of productivity growth in the first quarter of 2006. A big increase in productivity should put stocks in rally mode.
EARNINGS TO WATCH: Eastman Kodak, Goodyear Tire & Rubber, International Paper, Kerr-McGee, Revlon, Tyco International, and UBS
Friday, May 5:
JOBS REPORT: The Labor Department will release its April jobs report this morning. In addition to the total number of new jobs created, keep a close eye on wage growth, as Wall Street views that as a major driver of inflation.
EARNINGS TO WATCH: El Paso Corp., Four Seasons Hotels, Washington Post Co., and Warner Music Group
