Economic growth and personal spending is the key data for the week ahead

Sunday 3/23/08 7:41 PM

By Dave Harris

Happy Easter!

A final reading on fourth quarter GDP is due Thursday from the Commerce Department. The potentially brutal numbers is something Wall Street is conditioned for given this period of moderate recession. And since consumer spending is such a strong factor, I believe Friday's reading on personal income and spending will be closely watched by the big money managers. Should the income readings and fourth quarter growth show a moderate gain, I believe stocks will go up in response.

Last week’s news that Nike (NKE) had a 30 percent profit increase in the 3^rd quarter shows some companies are weathering the storm quite well. This company continues to gain market share, recession or not. Future orders rose by 11 percent. The Olympic Games are coming up, and Nike forecasts a great fourth quarter ahead, including fiscal 2009. I would buy the stock here at $67. It’s going higher.

Tomorrow, drug store chain Walgreens (WAG) reports their second quarter. I believe this stock is beaten down beyond belief, and is too cheap. Wait for the earnings results, because you never know how the market is going to react. Long term, this stock is a good buy here at around $36.

Other somewhat significant corporate earnings this week include ConAgra Foods (CAG), Williams-Senoma (WSM) and home builder Lennar (LEN) on Thursday. Another builder, KB Home (KBH) is Friday. Other economic data of note is Monday's existing home sales, consumer confidence Tuesday, and initial jobless claims from the labor Department on Thursday.