Fund Firms Take Stage

The market's October swoon may have already caused investors to forget the third-quarter rally. If so, this week's earnings reports from asset managers should jog their memories, even if valuation concerns keep a lid on share prices.

"Average assets under management rose last quarter, and that's how the group makes its money, so you should see some strong performances," says Matt Snowling, analyst at Friedman Billings Ramsey. "We won't see the effects of the recent market pullback until next quarter."

For the benefit of those traders whose memories have taken a pounding along with their positions since the start of this month, the S&P 500 and the Russell 2000 indices were up 3.1% and 4.4%, respectively, from July through September. The Nasdaq Composite rose 4.6% over that time. ...