7 Key Market Indicators This Week

The stock market was able to squeeze out positive gains last week, with the Dow Jones closing up 39 points on Friday. Mad Money host Jim Cramer believes that investors should remain cautious, but there is no reason to be overly pessimistic.

There are several bullish indicators that are pointing to better times ahead. The white-hot China market appears to be set for a soft-landing. The financial system in Spain doesn’t appear ready to collapse. The long awaited financial reform seems to be getting closer.

Of course there are causes for concern as well. Oil is still gushing into the Gulf of Mexico. Unemployment is still extremely high. Higher taxes and possibly even inflation is on the horizon.

Jim Cramer did point out 7 key market indicators this week that investors should pay close attention to:

Chicago Board Options Exchange IPO

Mr. Cramer believes this IPO launch on Wednesday will have “huge implications for the exchanges and the market as a whole.”

Best Buy earnings

Best Buy will be the key earnings report coming out this week and is the “ultimate barometer of discretionary spending” said Cramer.

J.M. Smucker’s earnings

Cramer advised investors to pay attention to comments about the Folger acquisition.

Pier 1 Imports’ earnings

Following a huge run up in their stock price, Pier 1 shares have fallen 30% since Cramer’s recommendation in April.

The Housing Starts and Permits report

Wednesday’s report will be a key indicator for a housing market that appears to have fallen flat since the tax credits expired in April. Cramer expects this number to drop, but low interest rates may provide some lift.

Producer Price Index and Consumer Price Index Report

Investors will likely welcome signs of inflation from this report, as it may indicate that the economy is finally improving.

Options expiration

Investors may see some “unnatural trading” said Cramer due to options expiration in the middle of the week.