Wall Street awaits Intel, Citi earnings
Wall Street's fixation on economic data turns into a craving for profit news and forecasts this week as a slew of corporate earnings reports arrive.
Investors will receive their first big batch of reports from the final quarter of 2006 and try to determine whether the robust profits that have propelled stocks to new heights will continue.
While market forecasters expect profit growth to slow in 2007 amid what is seen as a decelerating economy, investors are nonetheless anxious to gain a better sense of how companies fared in the fourth quarter. The quarter and overall year saw enormous gains in stock prices, justified in part by double-digit earnings growth.
Gains continued last week, with the Dow Jones industrial average rising 1.27 percent to a record close Friday. The Standard & Poor's 500 index advanced 1.49 percent and the technology-laden Nasdaq composite rose 2.82 percent.
Though earnings season had its unofficial start last week with Alcoa Inc.'s better-than-expected results, the real action begins Tuesday, when the week shortened by the Martin Luther King Jr. holiday starts and investors hear from Intel Corp.
While investors will keep tabs on earnings, economic readings will still hold great sway over the mood on Wall Street. The week brings a slew of data, including figures on inflation and regional manufacturing.
Wall Street has reacted to recent economic reports with a mix of concern, enthusiasm or indifference as it struggled to determine whether the economy is slowing adequately or headed toward recession. It is hoped a gradual slowdown would protect corporate profits and allow the inflation-wary Federal Reserve to lower short-term interest rates.
ECONOMIC DATA
Investors returning to work Tuesday will be greeted with a snapshot of regional activity from the New York Fed, which is expected to release its Empire State manufacturing survey for January.
Wednesday brings a flurry of data, including the U.S. Fed's beige book, which summarizes regional economic activity across the country. Release of the report precedes the central bank's first meeting of the year at the end of the month.
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- 2 Dollar edges down, Asia stocks up before Fed
- 3 Meryl Streeps daughter gets first Hollywood break
- 4 Mainland wine export deal reached
- 5 Asian stocks edge higher ahead of Fed decision
- 6 Views sought on multi-party litigation
- 7 Stocks extend gains following ISM
- 1 China to launch stock exchange for smaller companies
- 2 Obama bringing hefty agenda on European trip
- 3 GM sees bankruptcy risk
- 4 For Wall Street, March is best month since 2002
- 5 North Korea missile consistent with satellite: U.S.
- 6 HK, Shenzhen agree on innovation plan
- 7 $6.6b Gov't deficit recorded
- 1 Yen advances; shares edge higher, cheer earnings
- 2 Ex-GM CEO Wagoner retires with $8.6 mln
- 3 Investors bet on quick deal in UBS tax row
- 4 Major nations should back dollar as key currency: Japan
- 5 Job losses overshadow manufacturing recovery
- 6 General Mills profit tops view; 2010 outlook strong
- 7 Monsanto profit, restructuring send shares higher
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