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To: James Strauss who wrote (9089)	6/21/2001 9:57:04 AM
From: Bucky Katt	Read Replies (1) \| Respond to of 13094

Corporate America is fast approaching a forgettable milestone: More than 1,000 U.S. companies are expected to issue negative earnings preannouncements for the second quarter. The first quarter's record of 935 negative preannouncements could easily be smashed, as companies realize that economic conditions deteriorated more sharply than they had anticipated, analysts say. Many companies continue to ratchet down their expectations, and some of them have already issued second and third warnings about the latest quarter. So far, 538 companies have announced they will miss earnings numbers -- 65% of the 825 companies that so far have preannounced -- a pace that will only accelerate in the next couple of weeks as the high point of the confession season kicks in, says Joe Kalinowski, who tracks earnings at Thomson Financial/First Call. He predicts a "swooping down" of estimate reductions that will end up swamping all other tallies by Thomson Financial since it began tracking numbers in the first quarter of 1996. All this bad news comes as investors had been factoring in a quicker recovery for profits. "Expect downward pressure on equity prices" as investors react to the parade of poor earnings performers, Mr. Kalinowski says. To be sure, major stock-market indexes are already weak, having reacted early on to what was expected to be a very tough second quarter. But the weakness could linger because the magnitude of the second quarter shortfall was more severe than expected, prolonging companies' recoveries, some analysts said. Some signs during the past two days have, in fact, indicated that the storm clouds will take some time to clear. The usual culprit was afoot: A host of companies, including Tellabs, Teradyne and Jabil Circuit, warned Wednesday that they will miss expectations for their current quarter. From Dow Jones newswire....