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Earnings reports, home building data expected

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From the Associated Press

This week’s data on investment bank earnings, the housing downturn and inflation will help investors decide how the economy and corporate America are faring as they head into the new year.

Wall Street hit a few snags last week: The tools in the Federal Reserve’s arsenal look as if they may not be sufficient to battle the credit crisis, and inflation appears to be accelerating.

Last week, the Dow ended 2.1% lower, the Standard & Poor’s 500 index finished down 2.4%, and the Nasdaq composite index ended down 2.6%.

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Goldman Sachs Group Inc. reports its fourth-quarter results Tuesday, Morgan Stanley reports Wednesday and Bear Stearns Cos. reports Thursday. Wall Street expects Goldman to have performed well, as it did in the third quarter, but expects big credit losses to hurt Morgan Stanley and Bear Stearns.

In other earnings this week, Best Buy Co., Hovnanian Enterprises Inc. and Palm Inc. report on Tuesday; General Mills Inc. reports on Wednesday; Discover Financial Services, ConAgra Foods and Research in Motion Ltd. report on Thursday; and Circuit City Stores Inc. and Walgreen Co. report on Friday.

Early in the week, Wall Street will get snapshots of the housing market. The National Assn. of Home Builders today releases its December housing index, which economists are expecting to hold at November’s reading of 19, and the Commerce Department reports Tuesday on November housing starts and building permits, which economists predict will slip compared with October.

On Thursday, the Commerce Department releases its final reading on third-quarter gross domestic product. Economists are anticipating GDP growth will come in at 4.9%, as estimated last month; however, they are less optimistic about growth in the quarters to come.

Late in the week will be the Labor Department’s report on personal income and spending in November, which will also include the core personal consumption expenditures deflator. It is expected to show year-over-year growth of 1.9% -- within the Fed’s comfort range of 1% to 2%.

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At a glance

Today

President Bush discusses the economy in a trip to Fredericksburg, Va.

Treasury bill auction.

Quarterly earnings report due from Adobe Systems.

Tuesday

Commerce Department reports on housing starts for November.

Quarterly earnings reports due from Palm, Best Buy and Goldman Sachs Group.

Wednesday

House judiciary subcommittee hearing on Americans working for U.S. contractors in Iraq.

Health and Human Services Secretary Michael Leavitt speaks at the National Press Club on the safety of Chinese imports.

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Sentencing of Gregory Reyes, former chief executive of Brocade Communications Systems Inc., convicted of securities fraud in a scheme to backdate stock options.

Quarterly earnings reports due from Oracle, General Mills, Morgan Stanley and Nike.

Thursday

Conference Board reports its monthly leading economic indicators index.

Commerce Department reports on the gross domestic product for the third quarter of 2007.

Labor Department reports on weekly jobless claims.

Freddie Mac reports on mortgage rates.

Earnings reports due from American Greetings, Bear Stearns Cos., ConAgra Foods,

Discover Financial Services, FedEx and Red Hat.

Friday

Commerce Department reports on personal income and spending for November.

Quarterly earnings reports due from Circuit City Stores and Walgreen.

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