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Weekend Reading: Earnings Time

Paul Kedrosky

Good Sunday morning. As always, here are some articles and papers worth reading. First, however, a look back at the week that just finished, and a look forward at the week ahead.

It was an indifferent week for the major markets, with all three major indices up nominally or not at all. The Dow ended the week where it began it, and the S&P 500 advanced 0.2%, and the Nasdaq was up 0.5%.

The Dow got a taste of 11,000, and then fell back somewhat. After the prior week's standout gains, a less eventful second trading week in 2006 wasn't too surprising. Nevertheless, optimism remains high that the year's early advances will continue, with rate increases ending shortly, and fourth-quarter corporate profits and guidance looking solid.

Turning to the economic week ahead, we will see data about manufacturing health, unemployment, and housing starts, as well as the December consumer price index, an important inflation measure. The latter figure will be out Wednesday, and it will be watched closely, as will the Federal Reserve's Beige Book, with its information on current economic conditions.

Next week is active on the domestic earnings front. According to Reuters, the consensus is for 14% overall earnings growth, and we will see the first indications on things in the coming week, with a range of companies reporting. There are a number of technology companies reporting, including Intel, Yahoo, Apple and Advanced Micro Devices.

Also next week we have some major financial companies reporting, including Citigroup, Merrill Lynch and Wachovia. The other major report to watch next week will come from General Electric.

Finally, here are some articles and papers worth reading.

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