Economic Data Aren’t Expected to Boost Hopes

This week’s economic reports, including data on personal spending, the manufacturing sector and the labor market, are expected to do little to convince Wall Street and Main Street that the economy has emerged from the doldrums.

“Floor traders, portfolio managers and investors are hoping that this market will bounce back from what appears to be an oversold condition,” said Alan Ackerman, a market strategist at Fahnestock & Co. “But the U.S. economy and world economies are still on a rough road to recovery.”

About 395 companies, nearly 80% of the Standard & Poor’s 500, have posted quarterly earnings so far. Of that total, 56% surpassed analysts’ expectations and 14% missed forecasts, according to market research firm First Call/Thomson Financial, a slightly better performance than usual as analysts ratcheted down estimates in the wake of a particularly brutal profit-warning season.

Analysts expect profits of S&P; 500 companies to shrink by 17.2% in the second quarter compared with year-ago levels, according to First Call. They predict third-quarter profits will decline 11.5%, but scrape out a gain of 0.9% in the fourth quarter, First Call said.