U.S. Stock Market Faces Over 100 Corporate Earnings Reports Amid Economic Uncertainty

Strategic Insights -

U.S. stock indexes rose 7 percent last week after impressive earnings and forecasts from major companies, including Goldman Sachs Group Inc., IBM Corp., and Intel Inc. This week, more than 143 Standard & Poor's 500 companies are set to report their quarterly results, including industrial manufacturer Eaton Corp., toymaker Hasbro Inc., and oil services giant Halliburton Co. Investors will closely watch these reports for signs of economic recovery, with the Federal Reserve Chairman Ben Bernanke set to deliver his semiannual testimony on the U.S. economic outlook and monetary policy.

Key Takeaways:

  • The U.S. stock market faces over 100 corporate earnings reports this week, including 143 Standard & Poor's 500 companies.
  • Last week's earnings and forecasts from major companies helped major indexes rise 7 percent, with the Dow Jones industrial average gaining 7.3 percent, its best week since the middle of March.
  • Of the 55 S& 500 companies reporting results so far, 70 percent beat most analysts' expectations, 10 percent were in line with them, and 20 percent were below most estimates.
  • U.S. unemployment is currently at a 26-year high of 9.5 percent, with the Fed predicting unemployment will top 10 percent by the end of the year.
  • The Conference Board's June index of leading indicators is expected to show a 0.5 percent rise after a 1.2 percent increase in May and a 1.1 percent rise in April, many market analysts estimate.
  • Sales of existing homes are expected to climb to one of the highest rates since last fall.
  • European shares were higher in midday trading, with London's FTSE 100 index gaining 1.2 percent and Frankfurt's DAX blue chip stock market index rising 1.5 percent.
  • Japanese markets were shut for the Marine Day holiday.
  • U.S. Federal Reserve Chairman Ben Bernanke will appear before Congress twice to deliver his semiannual testimony on the U.S. economic outlook and monetary policy.

Statistics:

  • 143 S& 500 companies are set to report their quarterly results this week.
  • The Dow Jones industrial average gained 7.3 percent last week, its best week since the middle of March.
  • U.S. unemployment is currently at a 26-year high of 9.5 percent.
  • The Fed predicts unemployment will top 10 percent by the end of the year.
  • The Conference Board's June index of leading indicators is expected to show a 0.5 percent rise.
  • Sales of existing homes are expected to climb to one of the highest rates since last fall.
  • London's FTSE 100 index gained 1.2 percent in midday trading.
  • Frankfurt's DAX blue chip stock market index rose 1.5 percent in midday trading.
  • Japanese markets were shut for the Marine Day holiday.

Sources:

  • Bloomberg (no date)
  • Dow Jones Newswires (no date)
  • Wall Street Journal (no date)
  • Reuters (no date)
  • Bloomberg, "U.S. Stocks Rise 7 Percent Amid Earnings Optimism" (no date)
  • Bloomberg, "S&P 500 Has Worst Losing Streak Since 2008" (no date)
  • Wall Street Journal, "U.S. Stock Futures Advance Amid Earnings Optimism" (no date)
  • Reuters, "U.S. Stock Market Rises Amid Economic Uncertainty" (no date)
  • Bloomberg, "CIT Group Secures $3 Billion in Rescue Financing" (no date)