The obvious good reason for buying and selling during earnings season is the quick ability to make some nice money. But when looking at the bigger picture, a companies guidance can not only give you insight on the direction of the company, but also of the overall economy. Take Amazon for instance, last week it projected a strong holiday sales season, this means more money for the company, but when looking outside the box, it breaks down to more people spending which is good for the broad retail market which will lead to hiring in the retail industry and secondary spending on goods (you need to drive to the store = gas, stop to eat = fast food, etc).

Now heading into this week a couple of stocks are going to paint a better picture on where the economy is going. These companies are the hiring site Monster (MWW) which will report earnings on Thursday. Now, if the company posts a profit, you will know that more companies are using the sit to post jobs and that means an increase in hiring rather than firings. Another company is DeVry. This is the famous school we all see advertising on TV at all hours. Well, if enrollment if profits are slowing at this school, you will know that less people are trying to upgrade their skills because they already have jobs. Makes sense? The next company is International Paper (IP) which will also report this week. They need to show a profit which will mean more of their inventory is being used in offices. More workers = more need for paper which means increase demand.

Think outside the box and you will find trading opportunities for the short and long term.

Here is what to expect for the coming week (video) – important watch:

(XOM) is a stock I want to get into. Its expected to post lower earnings which is fine with me, but as the economy picks up, the price will go up too as we have seen happen not too long ago.

Happy Investing!

Aman, MBA

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