Stocks kick off the fourth quarter with a profit last week, but next week is more challenging as the quarterly results season kicks off in Europe and the debt crisis remains in the spotlight. S & P 500 company earnings are expected to have climbed nearly 13% in the third quarter of 2011, according to earnings tracker Thomson Reuters. The turnover of the companies in the benchmark index is expected to have increased by 10%.
While investors will take note of the third quarter results compare rate estimates, they will focus more on how companies expect to perform for the rest of the year.
Pepsico results, due before the opening bell on Wednesday, will shed light on the financial health of consumers around the world amid growing signs of a global economic slowdown.
Not a recession. But who cares?
On Thursday, JPMorgan Chase the first of the nation’s major banks to report results. U.S. financial giants have been hammered recently, amid concerns about what they may have exposure to the sovereign debt of Greece and other so-called peripheral countries in Europe.
Investors will also remain on the edge as they keep a close eye on developments in Europe. Stocks ended lower on Friday, snapping a 3-day winning streak, after Fitch lowered its ratings for Italy and Spain and UK banks Moody’s downgraded 12.
“Europe’s debt problem is still the largest elephant in the room,” said Tom Schrader, managing director at Stifel Nicolaus. As long as European officials continue to stall taking substantive steps toward a resolution of the regional debt crisis, investor sentiment and market pressure, he said.
0:00 / 1:26 Bernanke: A Greek standard can hurt us
On Wednesday, investors will receive the minutes of the Federal Reserve meeting in September, when the central bank called Operation Twist, a plan to swap $ 400 billion of short-term bonds for longer-term bonds announced, but did not meet the launch of the third round of buying bonds.
Economic data come in two major parties at the end of the week: weekly unemployment claims and the August trade numbers are due Thursday, while the September retail, import and export prices, in October consumer confidence and August business inventories on tap for Friday.
source:cnn
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