Market Optimism Seen Despite Earnings News
U.S. stocks are poised to rise this week as investors look past the flood of expected earnings reports and see a potential rebound in the economy and corporate profits.
Wall Street already is forecasting the worst period for earnings in a decade. But with the trickle of earnings reported so far mostly in line with expectations, investors don’t expect more bad news. Any positive surprises would be favorably received.
One caveat, though: More attacks on U.S. soil and all bets are off.
This week will see 180 of the S&P; 500 companies post results, including such blue-chip names as Citigroup Inc., J.P. Morgan Chase & Co., Johnson & Johnson, General Motors Corp., IBM Corp., Intel Corp. and Microsoft Corp.
Profits for S&P; 500 index companies are expected to shrink by 22.4% this quarter, making it the worst quarter for profits since the second quarter of 1991, according to research firm Thomson Financial/First Call.
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