Earnings, housing and inflation data awaited
new york -- The third-quarter earnings season begins in earnest this week, with investors hoping to learn how bad the damage was from the summer’s credit crunch and what to expect in the coming quarters.
The deluge of reports will include results from technology names such as Intel Corp., IBM Corp. and Google Inc.; banks such as Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp.; and industrial companies including Caterpillar Inc. and Honeywell.
Last week, the major stock indexes managed modest gains. The week was a bit rocky but saw the Dow Jones industrial average and the Standard & Poor’s 500 index touch all-time highs. The Dow finished the week up 0.2%, the Standard & Poor’s 500 index ended up 0.3% and the Nasdaq composite index rose 0.9%.
The gains were fueled in part by the week’s economic data, which were mostly positive. On Friday, the Commerce Department said retail sales rose 0.6% in September from August -- double the growth economists predicted -- a day after some U.S. retailers reported sluggish demand in September.
This week brings some key economic gauges, which investors hope will suggest that the economy is still growing moderately and that inflation is under control.
The National Assn. of Home Builders releases its housing market index Tuesday. On Wednesday, the Labor Department releases its August reading on consumer prices; the Federal Reserve puts out its so-called beige book report on economic conditions around the country; and the Commerce Department reports on housing starts. And Thursday, the Conference Board releases its September index of leading economic indicators.
Meanwhile, Wall Street will be listening to speeches from some Fed officials during the week -- including Chairman Ben S. Bernanke, who is scheduled to speak at a St. Louis Fed conference on Friday.
Other major companies releasing earnings this week include Johnson & Johnson, Yahoo Inc., Coca-Cola Co., Merrill Lynch, Advanced Micro Devices, Pfizer and McDonald’s Corp.
In the municipal bond market, California is expected to sell $2.5 billion in tax-exempt general obligation bonds this week.
Brokers will take bond orders from individual investors today and Tuesday. Institutional investors will submit bids on Wednesday, and interest rates on the bonds will be set that day.
As usual in a large state bond sale, the securities will be sold in terms ranging from one year to 30 years.
Recent yields on outstanding bonds may give a sense of what the new securities will pay. On Friday, two-year California general obligation bonds paid an annualized yield of 3.5%. The yield was 4.14% on 10-year bonds and 4.6% on 20-year issues.
Because the interest is exempt from state and federal income tax, the true yields can be much higher, depending on an investor’s tax bracket.
Times staff writer Tom Petruno contributed to this report.
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At a glance
Today
The 2007 winner of the Nobel prize in economics is to be announced.
Treasury bill auction.
Quarterly earnings reports due from Mattel, Charles Schwab, Genentech and Citigroup.
Tuesday
Federal Reserve reports on industrial production for September.
Quarterly earnings reports due from Intel, McClatchy, Wells Fargo, Yahoo, IBM and Johnson & Johnson.
Wednesday
Labor Department reports on the consumer price index for
September.
Commerce Department reports on housing starts for September.
Federal Reserve releases its survey of regional economic conditions.
Quarterly earnings reports due from EBay, Coca-Cola, Gannett, JPMorgan Chase, Merrill Lynch and Washington Mutual.
Thursday
Conference Board reports its monthly leading economic
indicators index.
Labor Department reports on weekly jobless benefit claims.
Freddie Mac reports on mortgage rates.
Entertainment for All electronics show begins at L.A. Convention Center.
Quarterly earnings reports due from Advanced Micro Devices, Google, Bank of America, Dow Jones, Eli Lilly Southwest Airlines, Union Pacific, UnitedHealth Group and Wyeth.
Friday
Quarterly earnings reports due from 3M, Boston Scientific, Caterpillar, McDonald’s,
Wachovia and Xerox.
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From the Associated Press
