Here's an excerpt from this week's Stock World Weekly -- the weekly newsletter of Phil's Stock World. This week, we discuss retail earnings, next week's data, the drop in unemployment, several Central Banks, and OPEC.  And Phil gives several trade ideas.

The Week Ahead

Next week’s earnings reports will be centered around retailers. Retailers that have already reported third quarter numbers have done well, with internet and specialty retailers showing the most annual growth.

More than 80% of S&P 500 companies have reported earnings, meaning next week is one of the last weeks where big name companies will report. 73% of companies have beat earnings expectations and 56% have beat revenue expectations.

Along with earnings are several important economic data points.

Wednesday, 10:00 a.m. - Wholesale Inventories Month Over Month

Wholesale inventory data gives investors a chance to look below the surface of the visible consumer economy. If inventory growth lags sales growth, then manufacturers will need to boost production to avoid product shortages. On the other hand, if unintended inventory accumulation occurs (i.e. sales fall short of expectations), then production will probably have to slow while those inventories are worked down.

Wholesale Inventories for September are expected to increase 0.48%, which is a decrease in growth from the August level of 0.7%.

If Wholesale Inventories rise less expected, it could have a positive effect on stocks. 

Thursday, 10:00 a.m. - JOLTs Job Openings

The JOLTS report defines job openings as all positions that are open (not filled) on the last business day of the month. To quality, there must be a specific position with work available that could be filled within 30 days for which the employer is actively recruiting workers from outside the establishment.

Active recruiting means the establishment is taking steps to fill a position such as advertising in newspapers, on TV, radio, or the internet.

JOLTs for the September are expected to be 4.85 million, a small gain from the August reading of 4.835 million.

A strong JOLT report should be good for stocks and bonds.

Friday, 08:30 a.m. - Retail Sales Month Over Month

Retail sales measure the total receipts at stores that sell merchandise to final consumers. Data is collected from the Monthly Retail Trade Survey conducted by the U.S. Bureau of the Census. Essentially, retail sales cover the durables and nondurables portions of consumer spending. Consumer spending typically accounts for about two-thirds of GDP and is therefore a key element in economic growth.

The estimate for October is 0.2% growth and the prior reading for September was -0.3% growth.

If the data comes in better than expected, equities should gain in value as retail sales growth signifies a stronger economy. Should the data come in weaker than expected, equities could be weaker.

Phil’s Trade Ideas

International Business Machines (IBM, $162.07)

IBM specializes in multinational technology and IT consulting, while also manufacturing and marketing computer hardware and software. 

IBM is down 14% this year as a disappointing Q3 earnings report had investors questioning whether the company had the capacity for future growth. IBM’s hardware business model is being pressured by moves to cloud computing - forcing the company to make wide-scale adaptations to its business model. Furthermore, demand for IT services is declining as customers are outsourcing to cheaper competitors. 

While the 2.7% dividend is an attractive, Phil likes selling the 2017 $150 puts for $16 better than owning the stock.   

Find out what other two entities Phil is bullish on this week. Click here to try Phil's Stock World reports and weekly newsletter free.