WEEK OF APRIL 22-28
GDP Expected to Show 4.8% Growth Rate
The government’s advanced tally of gross domestic product, the broadest measure of the economy’s health, will be closely watched when it’s released Friday. The report is expected to show GDP expanded at a 4.8% rate in the first quarter, up significantly from the fourth quarter’s 1.7% growth rate.
The market will scrutinize that number to see how much of it is attributable to inventory rebuilding and how much to final demand. Federal Reserve policymakers look for sustainable final demand for evidence a solid economic recovery is taking hold.
The University of Michigan’s consumer sentiment survey for April also is due Friday. In March, the index rose to its highest level since December 2000, suggesting continued robust consumer spending, which represents about two-thirds of U.S. economic activity.
The March durable goods orders report, due Wednesday, is expected to show that orders slipped in March after rising 1.8% in February, according to a Reuters poll.
On Thursday, the government is expected to report a 0.9% increase in the first-quarter employment cost index.
Reuters
Many Dow Components to Announce Earnings
More than 160, or about one-third, of the companies in the Standard & Poor’s 500 are slated to release quarterly results this week, marking the peak of the first-quarter reporting period. Many of the 30 blue-chip Dow components are on that lengthy list, from diversified manufacturer 3M Co. to telecom heavyweight AT&T; Corp.
But with a growing focus on transparent accounting and uncertainty over the strength of an economic rebound, corporate America will be tight-lipped about upcoming quarters.
About 220 companies, or 44%, of the S&P; 500 have reported earnings so far this season, according to Thomson Financial/First Call. Among those, 131 companies, or 60%, topped analysts’ estimates, and 30, or 14%, missed Wall Street’s targets.
First-quarter earnings are beating analysts’ estimates by an average of 3%, better than the 1% average recorded since the mid-1980s and the 2% average since 1990, according to Thomson Financial. But analysts warn that impressive performance is largely because of analysts’ significantly lowered forecasts.
Reuters
Milken Institute Hosts Global Conference
About 1,500 people will attend the Milken Institute’s 2002 Global Conference at the Beverly Hilton Hotel, beginning today.
The fifth annual event, whose theme is “Building Prosperity in an Interdependent World,” will bring together economists, academics, executives, financiers and others to discuss public policy, social issues and economic trends.
This year’s speaker lineup includes Jared Diamond, Pulitzer Prize-winning author of “Guns, Germs & Steel”; Peruvian development economist Hernando de Soto; former U.S. Secretary of Education William Bennett; Don Ohlmeyer, former executive producer of ABC’s “Monday Night Football”; California Treasurer Phil Angelides; Diane Swonk, chief economist for Bank One Corp.; Steve Forbes, former presidential candidate and editor-in-chief of Forbes magazine; and Jerry Brown, former California governor and current mayor of Oakland.
Marla Dickerson
Also
* Tuesday, Senate Commerce Committee hearing on how drug companies manipulate approval process to thwart competition from generic drugs.
Senate Judiciary Committee hearing on proposed merger of ATT and Comcast cable system.
Federal Reserve Chairman Alan Greenspan testifies before the Senate Banking Committee on federal deposit insurance.
Trial begins in Delaware Chancery Court to determine whether Hewlett-Packard Co. bought votes from certain major shareholders in an effort to pass its $20-billion plan to buy Compaq Computer Corp.
Wednesday, House takes up bill to reform corporate auditing and executive responsibility.
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Quarterly Earnings Preview
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