Coming Week: Data Rule in Earnings Quiet

All's quiet on the corporate front as companies begin to prepare second-quarter earnings reports, which investors anxiously await.

The second quarter officially ends on Tuesday, and many companies have entered their quarterly "quiet periods," during which they lock their lips until financial results are released. The only major statements firms are likely to make between now and then are warnings of worse results than they initially forecast.

"We're kind of in a holding pattern, a time when we're about to start getting earnings," says Roger Young, a portfolio manager at Miller/Howard Investments. "What that implies is ... guidance other than negative guidance is kind of put on hold."

Marian Kessler, co-portfolio manager of the Becker Value Equity Fund, notes that firms are also revising the "really draconian forecasting" provided in January for full-year results. Markets have improved drastically in the intervening time, and the economy has at last started to show signs of life.

Barring any dramatic corporate announcements, there's still a sizable amount of economic data set to be released during the holiday-shortened week. Tuesday brings data on consumer confidence and home prices. Wednesday will have ADP's employment report, as well as construction spending, the ISM manufacturing benchmark, oil inventories and auto sales.

But a report from Bank of America's economic research team believes all eyes will be on Thursday's official labor report, including initial claims and the unemployment rate.

"U.S. payrolls are the focus of a holiday-shortened week," writes economist and strategist Riccardo Barbieri, who expects employers to shave 375,000 positions.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting