Investors will look to first-quarter earnings reports next week for evidence that Thursday’s surprise profit announcement from Wells Fargo (WFC) was more than a fluke.
Economic reports due next week are likely to show continued low inflation and another drop in housing starts in March.
The financial sector will be squarely in the spotlight: Goldman Sachs (GS), which reports on Tuesday, is expected to return to a profit after posting a quarterly loss in December, the first since it became a public company in 1999.
Two other big U.S. banks, JPMorganChase (JPM) and Citigroup (C), will report on Thursday and Friday, respectively. Both said in March that business had improved in the first two months of 2008 after posting huge losses last year.
Google (GOOG), which reports Thursday, is expected to post higher per-share earnings and revenue despite concerns about a decline in online advertising.
Two large U.S. drug makers, Johnson & Johnson (JNJ) and Abbott Laboratories (ABT), report on Tuesday and Wednesday, respectively. The economic downturn has hurt some of J&J’s diverse units, including the consumer-health care division. Meanwhile, Abbott has held its own through the recession, helped by its fast-growing business in heart stents, which are used to prop open damaged arteries.
Computer chip maker Intel (INTC) reports first-quarter results Tuesday, and investors will be watching for any hints about whether the steep drop in demand for chips is easing. AMR Corp. (AMR), parent of American Airlines, and Southwest Airlines Co. (LUV) also report first-quarter results next week, on Wednesday and Thursday, respectively.
Investors will be looking to see how the airlines are weathering the economic storm.
Two of the nation’s troubled newspaper publishers, Gannett (GCI) and Media General (MEG), will post first-quarter results next week amid continuing declines in advertising and readership. Gannett reports on Thursday and Media General a day later.
General Electric (GE) reports first-quarter results on Friday and the focus is expected to shift from its beleaguered finance arm, GE Capital, to its big industrial businesses.
The government will report on March wholesale prices Tuesday and consumer prices a day later; both are estimated to show rises of 0.1%. On Thursday, March housing starts are expected to drop for the eighth time in nine months after an unexpected jump last month.
A report on March retail sales Tuesday is expected to show a gain of 0.3% after a drop of 0.1% in February. The government also details February business inventories Tuesday and March industrial production a day later.
On Wednesday, the Federal Reserve releases its Beige Book of anecdotal reports on economic activity in various regions.
Also, income taxes are due Wednesday.
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