NEW YORK (AFX) - Investors will receive a mountain of earnings data this week that should help them determine whether corporate profits, one of the catalysts for the recent run-up in stocks, have held up as well as some have predicted.
Coming off another record-setting week for the Dow Jones industrial average, Wall Street will be looking for new drivers to push stocks higher and, in the case of the Dow, past the 12,000 mark. The Dow Jones industrial average crept to another record close Friday, marking the third straight week of triple-digit increases by the blue chip index.
To see whether that will continue, investors will examine economic data such as the consumer price index, which measures inflation. A dozen of the 30 stocks that make up the Dow index are scheduled to report results, including technology names like Intel Corp. and consumer companies like Johnson & Johnson.
ECONOMIC DATA
On Tuesday, the Labor Department is scheduled to release the September producer price index, which measures the wholesale cost of goods. That same day, the Federal Reserve will weigh in on the country's industrial sector. The central bank is expected to issue its report on industrial production and capacity utilization for September.
Wednesday brings the Commerce Department's report on September housing starts and building permits. The health of the housing sector has weighed on investors who have worried that a slowdown in construction and pullback in housing values will erode consumer spending, which has been key to economic growth.
Also Wednesday, the Labor Department is expected to release its consumer price index, which is the key measure of inflation. The Fed, which keeps a watchful eye on inflation, left interest rates unchanged at its last two meetings after concluding rising prices were within limits. The Fed has said, however, that it remains concerned about inflation; investors hoping the Fed will continue to stand pat on rates will be watching this number.
Oil prices, which touched lows for the year last week, remain central to the stock market's run-up in many investors' eyes, as falling prices have put more money in consumers' pockets and reduced costs for myriad industries. Weekly data on crude inventories are due Wednesday.
On Thursday, the Labor Department is expected to release its weekly data on initial jobless claims, a snapshot of how many people seeking work are unable to find it. And also Thursday, the Philadelphia Fed reports on regional manufacturing activity for September.
EARNINGS DATA
On Tuesday, Wall Street expects to hear from Intel, which is expected to earn 18 cents per share for the third quarter. The chipmaker closed at $21.60 Friday and has traded between $16.75 and $27.49 in the past 52 weeks. Johnson & Johnson is also due to report third-quarter results. Wall Street expects the company, whose stock has traded between $56.70 and $65.88 in the past 52 weeks, to earn 93 cents per share. The stock closed at $64.58 Friday.
Other big names due that day include Motorola Inc., which is expected to show a profit of 34 cents per share for the third quarter. The cell-phone maker closed Friday at $26.20 and has traded between $18.66 and $25.75 in the past 52 weeks.
Yahoo Inc. is expected to weigh in with a third-quarter profit of 11 cents per share on Tuesday. The Internet search company closed Friday at $24.42 and has traded between $23.80 and $43.66 in the past 52 weeks.
Wednesday brings a fiscal fourth-quarter report from Apple Computer Inc., which is expected to earn 50 cents per share. Investors will be looking to see how sales of its popular iPod portable media player have held up. The stock closed at $75.02 Friday and has traded from $49.27 to $86.40 in the past 52 weeks.
AMR Corp., parent of American Airlines, is also due to report that day. Wall Street expects the carrier will earn 53 cents per share in the third quarter. The stock, which closed Friday at $24.95, has traded between $11.22 and $29.32 in the past 52 weeks.
Thursday will likely be the busiest day of the busiest week of earnings season, with reports from a slew of big-name companies. Citigroup Inc. is seen as reporting a third-quarter profit of $1.03. The stock closed Friday at $50.38 and has traded between $44 and $51.33 in the past 52 weeks.
Coca-Cola Co. is set to report; Wall Street expects the soft drink maker will turn in earnings of 59 cents per share for the third quarter. Coca-Cola closed Friday at $44.02 and has traded from $39.36 and $45.40 during the past 52 weeks.
McDonald's Corp., which helped drive stocks higher last week with its third-quarter profit forecast, is expected to earn 63 cents per share when it reports third-quarter results Thursday. The stock closed at $42.11 and has traded between $31.48 and $42.46 in the past 52 weeks.
Friday brings more big reports, including one from drug maker Merck & Co., which is seen as reporting earnings of 49 cents per share for the third quarter. The stock ended last week at $43.20 and has traded between $26.13 and $42.85 in the past 52 weeks.
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