5 Things to Watch on Wall Street This Week

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Electronics Arts ShowThere's never a dull moment on Wall Street. Let's go over some of the items that will help shape the week that lies ahead.

1. Game On: We're getting to that time of year when diehard gamers have no problem setting down their game controllers and checking in on the real world.

Electronic Entertainment Expo -- or E3 as it's more commonly known -- kicks off Tuesday. The three-day conference provides a showcase for software developers to build buzz for upcoming games, but it's also the time of year when the hardware makers make headlines.

We'll probably get a lot of details on Wii U -- Nintendo's (NTDOY) new console -- that's likely to hit stores in time for this holiday season. Nintendo's two larger rivals are unlikely to introduce a new machine until 2013 at the earliest, but there's always the possibility of a surprise or two up their sleeves.

2. Hard Times at Home: We may be basking in historic low mortgage rates, but the housing market is still trying to bottom out here.

Friday's gloomy employment news -- where the fewest new jobs were created in nearly a year and the country's unemployment rate ticked up to 8.2% -- isn't going to make potential home buyers any more comfortable in their big-ticket decisions.

It's against this iffy backdrop that Hovnanian Enterprises (HOV) steps up with its quarterly report.

A loss out of the homebuilder is expected. Hovnanian has only come through with a single profitable quarter since 2007. However, analysts do see the real estate developer posting a narrower deficit this time around.

Keep an eye on near-term trends when the company reports. Compare the number of order cancellations and new home orders with how Hovnanian has done in the past. It is then -- and only then -- that you can go through with your housewarming party.

3. One Last Wintry Blast: Temperatures are heating up around the country, so snow skiing and snowboarding may be the furthest things from your mind.

However, Vail Resorts (MTN) will check in with its latest fiscal results Wednesday. It was an unseasonably warm winter through many parts of the country this year, especially in February and March. It'll be interesting to see if that had any kind of impact on the operator of several Colorado ski resorts.

Analysts see a meaty profit of $2.19 a share for the quarter, and shareholders better not take that for granted. This is obviously a seasonal business: We're now wrapping up what they call "mud season" when melting snow makes many of these resorts ghost towns until business picks back up during the summer with mountain hiking and golfing.


4. More Magic at the Multiplex: This is the time of year when big movies just keep on coming. After a disastrous 2011, movie makers have had a strong start to 2012. With plenty of the May strong releases still drawing audiences it's going to be a crowded weekend at the local multiplex.

Two likely blockbusters opening Friday are Prometheus and Madagascar 3: Europe's Most Wanted.

Prometheus is the long-awaited sci-fi return of acclaimed director Ridley Scott, the visionary filmmaker behind Alien, Blade Runner, and Gladiator.

Younger moviegoers -- or those that are just young at heart and enjoy a good computer-rendered feature film -- can warm up to the third installment in DreamWorks Animation's (DWA) Madagascar franchise.

5. New Names on the Earnings Block: May was a quiet month for IPOs. There were just 10 companies that went public last month, and the market's uninspiring reaction to Facebook's (FB) debut will make it hard for investors to get too excited about new deals down the line.

There will be two companies that have gone public over the past year -- bedding retailer Mattress Firm (MFRM) and apparel boutique operator Francesca's Holdings (FRAN) -- reporting this week. Both retailers are expected to post healthy net income for the period. That probably won't be enough to get investors to trust the next wave of IPOs, but every little bit of confidence-building helps.

Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Facebook. Motley Fool newsletter services have recommended buying shares of Nintendo, DreamWorks Animation SKG, and Vail Resorts.


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tacsan222

IT'S NOT JUST "OBAMA",,YOU GOT TO GIVE CONGRESS AT LEAST 1/2 THE BLAME,,AFTER ALL CONGRESS ONLY HAS A 17% APPROVAL RATING

June 04 2012 at 8:23 PM Report abuse +2 rate up rate down Reply
1 reply to tacsan222's comment
ohmyboehnertwo

SINCE THE TEA PARTY CAME IN 2010 CONGRESSES APPROVAL RATING HAS REACH A NEW RECORD LOW.

June 04 2012 at 11:55 PM Report abuse -2 rate up rate down Reply
tacsan222

THE STOCK MARKET IS NOT FOR MOST OF THE PEOPLE,,THERE IS NOTHING LEFT FOR THE "SAVERS"??????? WHEN IS ALL THIS FOOLISHNESS GONNA END

June 04 2012 at 8:13 PM Report abuse rate up rate down Reply
tacsan222

NOT A GOOD WAY & SAFE WAY FOR YOUR FUTUE

June 04 2012 at 8:10 PM Report abuse +1 rate up rate down Reply
tacsan222

YOU MAKE MANY MONEY OVER A PERIOD OF TIME & THEN LOOSE IT ALL BACK IN A SHORT TIME

June 04 2012 at 8:09 PM Report abuse +1 rate up rate down Reply
tacsan222

WHAT GOOD IS WALLSTREET FOR MOST OF THE PEOPL

June 04 2012 at 8:08 PM Report abuse rate up rate down Reply
1 reply to tacsan222's comment
cpo1514

Your pension and SS retirement are invested in wall street. What the F are you a 99% member for life?????

June 05 2012 at 7:02 AM Report abuse rate up rate down Reply
ajponi

STOP SENDING ME EMAILS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

June 04 2012 at 7:49 PM Report abuse +1 rate up rate down Reply
arcticshade

Watch wall street itself and support your local occupy(revolution) The .001% own the media and it will always make the revolution look bad if they feel that they can not take it over.

June 04 2012 at 7:32 PM Report abuse +1 rate up rate down Reply
kolblh

No. 6: don't believe one word from Wall Street.

June 04 2012 at 5:41 PM Report abuse +3 rate up rate down Reply
jdykbpl45

The market go down!

June 04 2012 at 4:21 PM Report abuse +1 rate up rate down Reply
Devin

Why not do an in-depth research report on both why Discovery Labs isn't moving and why now is the perfect time to both invest in Biotechs and DSCO? They have been major M&A targets the past Spring, and I don't see that stopping in the near future.

Received FDA approval for 1 of its drugs, SURFAXIN, and its nebulizer Affectair on March 5th of this year. PPS Spiked at 5.39 until a week later, a secondary offering of 16 million shares @2.80 was submitted, killing the momentum from the FDA approval and leaving it in the doldrums where it sits today, lagging behind companies with only ONE drug and deeply in the red like Seattle Genetics SGEN, currently trading at over 19. DSCO is slated to have it's distribution pipeline for its infant RDS (Respiratory Distress Syndrome) drug out by the end of the year, with EU approval next year. Trading at currently 2.52, this stock could be the steal of the year, and can actually beat Bank of America (before the crises) as comeback stock or Stock of the Year. The volume is currently dismal as longs have rooted into their positions and currently not selling. Check it out and do your own due diligence.

June 04 2012 at 3:26 PM Report abuse rate up rate down Reply