Readings on economy, jobs could dominate trading

[Omaha Steve]

http://apnews.excite.com/article/20080727/D926BG380.html

Jul 27, 1:58 PM (ET)

By JOE BEL BRUNO

NEW YORK (AP) - Investors head into the week with a bit more resolve that U.S. companies are doing a better-than-expected job managing their way through an economy stifled by unprecedented turmoil in the housing and credit markets.

Wall Street is about midway through second-quarter earnings season, and the overall results haven't been as dreary as some analysts feared. About 61 percent of the Standard & Poor's 500 index companies reporting results so far have surpassed projections, and 72 percent of them were able to top last year's sales figures.


Traders work on the floor of the New York Stock Exchange in New York, Thursday, July 24, 2008. Wall Street abruptly ended an earnings-driven rally and closed sharply lower Thursday after a steeper-than-expected decline in existing home sales and worries about the financial sector chilled the market's recent optimism. The major indexes fell about 2 percent, including the Dow Jones industrial average, which lost more than 275 points. (AP Photo/Ed Ou)


Expectations were low for the quarter and that helped some companies beat forecasts. But if you strip out the market's problem child - the financial sector - S&P said companies are headed for a 10 percent growth rate from last year.

"Regardless of the estimates or hype, a double-digit gain from non-financials is impressive - in any economy," said Howard Silverblatt, S&P's senior index analyst.

The fact that earnings have withstood the second-quarter turmoil might help put a more positive spin on the coming week. Investors are awaiting reports from several members of the Dow Jones industrial average and dozens of S&P 500 companies.

And, there also won't be a shortage of data that might offer some clarity about where the economy is heading. Readings are due on employment, gross domestic product and the manufacturing sector.

FULL story at link.