What to Expect in the Week Ahead

Happy Sunday! First let's have a look at the Macro.

The G20 meeting in Paris came to a close Saturday, with the group putting the ball in France and Germany's courts. They have a busy week ahead of them to prepare a "comprehensive plan" that will help put an end to the Eurozone sovereign debt crisis. They must have the plan together by the Oct. 23 meeting of European leaders.

A Financial Times article said that by the Oct. 23 meeting the Eurozone should, "...agree on the losses the private sector should take on Greek debt, arrange a credible plan for the recapitalization of European banks, and install a firewall to protect other countries from Greece's woes."

This 3-step plan, if you will, struck me as quite significant. For a while I thought all hope was lost, but now I see that a formidable plan seems to be close to fruition, and this is great news. Greece still will default and large losses will be taken, but the EFSF is prepared to help offset some of those losses. Beyond that, however, the recapitalization of banks and the "firewall" plan should prove to be successful. How they will implement the "firewall" plan I do not know, but it will be interesting to see what they come up with.

Europe will surely dictate the direction of the market in the week ahead, so make sure to keep an eye on it and I will be blogging during the week to keep you updated! Earnings will also either flood the market sentiment with optimism or the opposite, so make sure to keep an eye on those as well. Here is a list of important names who are releasing 3Q earnings this week:

Citigroup, Apple, Bank of America, Goldman Sachs, IBM, Coca Cola, Intel, Johnson & Johnson, Southern Copper Corporation, Yahoo! Inc., AT&T, American Express, Microsoft, Verizon, General Electric, Honeywell, and McDonald's.

These earnings will give a multi industry perspective on the outlook for growth in the global economy. I am especially interested in the bank stocks. It will be interesting to hear what and if Bank of America says about the implementation of debit card fees. Perhaps they will pull a Netflix and revoke that business plan in the future.

That's it for me, and I look forward to the week ahead.

Cheers,
EZ