Next Week's News Today (Obama, Bernanke and Volcker Go To Congress Edition)

It's time for Next Week's News Today where we publish our own futures calendar of earnings, reports, hearings and political events which will either drive the news, or deserve more attention. Last week we were correct to say that the foreclosure plan would indeed make last Wednesday nothing short of Big Wednesday. We were also right to point out that the details of the stimulus package would continue to be examined heavily.

What you are seeing in the press is a great deal of coverage devoted to the concept of nationalizing certain banks. What some may find confusing is how banks that have already received direct cash injections from the Treasury in return for stocks are sometimes referred to as "effectively nationalized." The difference is this: Banks receiving Treasury dollars in return for giving the government stocks are not nationalized. BUT, the government can find itself a dominate or controlling shareholder and thus have a great deal of say - thus the reference to effective nationalization. Alternatively, real nationalization is where the government steps in and takes over everything and stock holders are wiped out. It is this later concept that is being discussed. The reason is because when the Treasury announced the new rescue plan for banks it included a "stress test" where banks would have to show they were in trouble, but yet healthy enough to survive if they could just get their hands on some more cash. There are multiple press reports that banks may receive further details on the stress test this coming week. Thus, the discussion as to who is healthy and who is not.

This coming week you'll hear more about those stress tests and the word nationalization. It is an obvious slam dunk to say that President Obama's address to Congress (2/24) will garner headlines. What you should also note is that Fed Chmn. Ben Bernanke is testifying on Capitol Hill regarding the economy on (2/24-5) followed by Paul Volcker, the President's Economic Advisory Board Chmn. (2/26). Both will get grilled on President Obama's remarks because there will have been time to dissect them. Both will get asked about stress tests and nationalization. Their comments could end up impacting the markets as much or more as President Obama's.
We'll definitely be watching, you should too. We do caution that you check back to WhyYouCare.com for updates on scheduling.

Here's why you care about next week's trends in earnings and reports:
Earnings: Some trends this week that will highlight their sectors: 1) a couple auto companies reporting, 2) dollar stores, 3) pizza companies, 4) a bevy of real estate related firms, and 5) a couple media companies.

Reports: Consumer confidence (2/24), mortgage applications and existing home sales (2/25) and unemployment numbers.

Such a big week that you could almost miss it?: T. Boon Pickens in Washington, DC talking up alternative energy (2/24).

As always notable earnings, events, and reports are below:

MONDAY 2/23
Earnings: Campbell Soup, Developers Diversified Realty, General Growth Properties, Healthsouth, Hertz Global, Nordstrom.

Summit: White House Fiscal Responsibility Summit with President Obama, Vice President Biden, Treasury Secy. Geithner, and others.


Meeting: Natl. Governor's Assoc. Meeting (Governors only meeting with President Obama).


TUESDAY 2/24
Earnings: Avis Budget, CB&I, Consumer Portfolio Services, Crown Castle, Daimler AG, Domino's Pizza, DreamWorks Animation, Dycom, Education Realty Trust, Home Depot, Macy's, Northstar Realty, Office Depot, Orbitz, PG&E, Papa John's, Quanta Services, Radian Group, RadioShack, Sempra Energy, Steven Madden, Target, TASER, Thomson Reuters, Vornado Realty Trust, World Wrestling, Wynn Resorts.

Economic Report: Consumer confidence.

President Obama addresses Congress, 9p ET.

Hearing #1: Oversight and Investigations Subcmte. holds a hearing on "A Review of TARP [Troubled Assets Relief Program] Oversight, Accountability and Transparency for U.S. Taxpayers."

Hearing #2: Housing and Community Opportunity Subcmte. holds a hearing on "Loan Modifications: Are Mortgage Servicers Assisting Borrowers with Unaffordable Mortgages?"

Hearing #3: Senate Banking, Housing and Urban Affairs Cmte. hearing on the semiannual report on monetary policy with Fed Chmn. Ben Bernanke.

Discussion: Council on Foreign Relations holds a discussion with BP Capital Management founder T. Boone Pickens on "U.S. energy policy and the future of his $58 million national energy campaign, which calls for increased use of domestic energy products such as wind and natural gas and decreased dependence on foreign oil."


WEDNESDAY 2/25
Earnings: AMBAC, American Equity Investment Life, Caribou Coffee, Del Monte, Discovery, Dollar Tree, Donnelley & Sons, Equity One, Frontier Communications, Hearst-Argyle TV, ICT Group, J.M. Smucker, KBR Inc., Lexington, Martha Stewart, Mortons Restaurant Group, Pennsylvania R.E.I.T., Saks, Zale.

Economic Reports: Mortgage Banker's Assoc. releases mortgage application data, Natl. Assoc. of Realtors releases existing home sales data.

Stress Tests Start: Stress tests conducted by the federal government to measure the health of banks receiving government funds begin under the Capital Assistance Program.


Hearing: House Financial Services Committee (Day 1) on the Semiannual Monetary Policy Report - economic outlook. Witness: Fed Chmn. Ben Bernanke.

Confirmation Hearing: Senate Agriculture, Nutrition and Forestry Committee holds Gary Gensler's confirmation hearing to be chairman and commissioner of the Commodity Futures Trading Commission.


THURSDAY 2/26
Earnings: American International, AthenaHealth, Big 5 Sports, Cablevision, Capital Lease Funding, CapitalSource Inc., Checkpoint Systems, Dell, Digital Realy Trust, Duff & Phelps, EMCOR Group, First American, Frontier Oil, Frontline, Gap Inc., General Motors, Gramercy Capital, Grubb & Ellis, Hansen Natural, Hospitality Properties, HRPT Properties, JMP Group, KKR Financial, Kohl's, MGM Mirage, Midas, NASDAQ, Novatel Wireless, Pinnacle, RAIT Investment Trust, Safeway, Sotheby's, US Cellular.

Economic Reports: Initial Unemployment Claims, New Home Sales.

Hearing #1: House Financial Services Committee (Day 2) on the Semiannual Monetary Policy Report - economic outlook.

Hearing #2: Joint Economic Committee on restoring the economy and preventing another crisis. Witness: Paul Volcker - Chmn., President's Economic Advisory Board


FRIDAY 2/27
Earnings: Integra, Magellan Health.

Economic Report: Gross domestic product (GDP) data released.