Stocks May Drop on Poor Profits, War
NEW YORK — Stocks are poised to slip this week with the flood of earnings expected to yield little good news, while uncertainty over the war in Afghanistan and fear of more attacks on the United States will keep investors on edge.
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Major stock market gauges fell last week, and analysts say that trend will continue over the next two weeks as investors get more confirmation of what is expected to be the worst quarter for corporate profits in a decade.
Earnings could take a back seat, however, to geopolitical events as the United States embarks on a ground assault in Afghanistan and Americans brace for the possibility of more assaults on U.S. soil after the attacks on New York and Washington last month that killed more than 5,000 people.
"There's more uncertainty as you have guys on the ground, less support from earnings than what we're experiencing now, and maybe the reality of the weakness in the fourth quarter starting to weigh a little more on the market," said Jon Brorson, director of equities at Northern Trust.
A fresh batch of blue-chip firms are scheduled to issue quarterly scorecards this week, including financial services giant American Express Co., while Compaq Computer tops the list of high-tech firms reporting.
Wall Street also will be looking out for the latest economic reports, including the Federal Reserve's Beige Book, its anecdotal take on the U.S. economy, as well as durable goods data and weekly jobless claims figures. |
