Investors Eye Key Economic Reports

Investors this week will be watching for several key economic reports, including data on March retail sales, hoping to see signs that consumer spending is starting to pick up.

On Friday, the Commerce Department will report on sales at the nation’s retailers. Consumer spending accounts for more than two-thirds of the economy and is coming off the slowest three months since the third quarter of 2001, when the economy was in recession and the Sept. 11 terrorist attacks occurred.

Although purchases have held up, they are being restrained by the war in Iraq, the lowest consumer confidence in nine years and almost a half-million job cuts since the end of January.

Meanwhile, the closely watched University of Michigan’s index of consumer sentiment, also due Friday, will offer additional insight into consumers’ views of the economy.

Separately on Friday, the Labor Department will issue its producer price index for March.

This week also kicks off the quarterly earnings reporting season, when most U.S. companies report their results from the first three months of this year. Earnings from blue-chip conglomerate General Electric Co. and regional banking heavyweight SunTrust Banks Inc. are on tap this week.

Standard & Poor’s 500 companies are expected to show first-quarter earnings up 8.3% from a year ago -- down from expectations as the year began for 11.7% growth, according to research firm Thomson First Call.