Market Wrap-up for June 8 - Retail Sales & Greece

With earnings season winding down, all eyes this week will be on Retail Sales, Unemployment Claims and PPI data. The continuing Greek bailout situation could, however, dominate the headlines with top European officials confirming that a repayment resolution was required this week.

Monday

The G7 summit in Germany is set to conclude on Monday with economists awaiting commentary from German Chancellor Merkel and European Union Commission President Juncker over the Greek bailout package. On the economic front, the Labor Market Conditions index will be released at 10 am.

• Intel (INTC ) over the weekend was included in an alliance announcement from Chinese company Alibaba. Referred to as the “Marketplace Alliance Program”, the initiative would allow developers to tap into technology services from approved providers. The stock price looks unchanged in the pre-market. INTC has a dividend yield of 2.97%.

• General Electric (GE ) and the Canadian Pension Plan Investment Board are expected to confirm terms of an acquisition on Monday. According to a number of financial news sources, GE is looking to divest their private equity lending unit for a figure that could fall within the $10 to $16 billion range. GE has a dividend yield of 3.37%.

• H&R Block (HRB ) will release earnings after market with analysts forecasting an EPS of $2.69. HRB has a dividend yield of 2.54%.

Tuesday

Tuesday will see important economic data released in Europe, with Swiss CPI, U.K. Trade Balance, and French Trade Balance figures expected. Wholesale Inventories month-on-month in the U.S. are expected to rise 0.1% from the previous period.

• Limoneira (LMNR ) is set to release earnings after market on Tuesday with an estimated EPS of 14 cents per share. LMNR has a dividend yield of 0.83%.

Wednesday

Budget balance figures are set to be released at 2 pm on Wednesday, with the 10-year bond auction occurring one hour before. The market is factoring in a deficit of $98 billion for the May period, an adjustment from the previous month’s $156 billion surplus.

• Men’s Wearhouse (MW ), which has a dividend yield of 1.21%, will announce its quarterly earnings on Wednesday with analysts expecting a 51 cent EPS.

• RF Industries Ltd. (RFIL ) will also release its earnings during the day. The diversified electronics company is expected to fall within a range of 5 to 6 cents per share. RFIL has a dividend yield of 7.02%.

Thursday

Thursday is an important day on the economic calendar with Retail Sales, Unemployment Claims and Import Prices to be released. Measuring the change in value of sales, the market is pricing in a 1.1% rise in Retail Sales for the period. This is above the core estimate of 0.7%. Core Retail Sales do not take into account the automobile market. Unemployment Claims are predicted to increase slightly to 277,000.

Dividend earnings of note are as follows:

• Cherokee (CHKE ) is forecast to release earnings on Thursday with analysts forecasting fiscal quarter earnings of 36 cents per share. CHKE has a dividend yield of 1.72%.

Friday

Friday morning will see Producer Price Index (PPI) and sentiment data released to the market. Economists predict a rise of 0.4% for the May period, which is a 1% gain from the previous period. The University of Michigan Consumer Sentiment report at 10 am is also expected to paint a positive picture with a forecasted gain of 1.6.

No dividend earnings of note on Friday.

The Bottom Line

The continued Greek debt saga could overshadow earnings and economic data this week, with the European Commission looking to finalize an agreement over the last tranche of bailout funds. Outcomes from G7 summit talks on Monday could also do little to abate further market volatility.