The Week Ahead - Earnings, housing and inflation data awaited
new york -- The third-quarter earnings season begins in earnest this week, with investors hoping to learn how bad the damage was from the summer's credit crunch and what to expect in the coming quarters.
The deluge of reports will include results from technology names such as Intel Corp., IBM Corp. and Google Inc.; banks such as Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp.; and industrial companies including Caterpillar Inc. and Honeywell.
Last week, the major stock indexes managed modest gains. The week was a bit rocky but saw the Dow Jones industrial average and the Standard & Poor's 500 index touch all-time highs. The Dow finished the week up 0.2%, the Standard & Poor's 500 index ended up 0.3% and the Nasdaq composite index rose 0.9%.
The gains were fueled in part by the week's economic data, which were mostly positive. On Friday, the Commerce Department said retail sales rose 0.6% in September from August -- double the growth economists predicted -- a day after some U.S. retailers reported sluggish demand in September.
This week brings some key economic gauges, which investors hope will suggest that the economy is still growing moderately and that inflation is under control.
The National Assn. of Home Builders releases its housing market index Tuesday. On Wednesday, the Labor Department releases its August reading on consumer prices; the Federal Reserve puts out its so-called beige book report on economic conditions around the country; and the Commerce Department reports on housing starts. And Thursday, the Conference Board releases its September index of leading economic indicators.
Meanwhile, Wall Street will be listening to speeches from some Fed officials during the week -- including Chairman Ben S. Bernanke, who is scheduled to speak at a St. Louis Fed conference on Friday.
Other major companies releasing earnings this week include Johnson & Johnson, Yahoo Inc., Coca-Cola Co., Merrill Lynch, Advanced Micro Devices, Pfizer and McDonald's Corp.
In the municipal bond market, California is expected to sell $2.5 billion in tax-exempt general obligation bonds this week.
Brokers will take bond orders from individual investors today and Tuesday. Institutional investors will submit bids on Wednesday, and interest rates on the bonds will be set that day.
As usual in a large state bond sale, the securities will be sold in terms ranging from one year to 30 years.
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