More earnings reports expected this week

The uncertainty that has at times waylaid Wall Street in the new year might be less of a factor in the coming week now that investors have been placated by generally good corporate earnings and upbeat comments from the Federal Reserve.

After putting up double-digit gains in the second half of 2006, the major indexes have shown a little more caution in 2007, at times making modest advances and then often resting or pulling back before moving higher.

Although such retrenchments are often viewed as a way to lay a solid foundation for further gains, they can also signal unease among investors.

Last week, stocks rose sharply after the Fed decided to leave short-term interest rates unchanged for the fifth straight time and said that the economy looked solid and that inflation appeared mostly under control.

For the week, the Dow was up 1.3%, the Nasdaq gained 1.7% and the S&P; 500 gained 1.8%.

Another week of earnings reports and profit forecasts could help build a consensus on where stocks go from here -- whether the long bull run in stocks will continue or whether February will show more of the occasional pauses seen in January.

Same-store sales figures, which reflect sales at stores open at least a year, could offer insight into consumer confidence.

Since consumer spending drives more than two-thirds of economic activity, Wall Street is keen on keeping consumers on the treadmill to maintain corporate profits.

With more than half of the companies that make up the S&P; 500 having already reported, concerns of sharply eroding profits have eased.