One-fifth of the 30 stocks in the Dow Jones Industrial Average
will report third-quarter results next week as the reporting season
picks up steam.
Meanwhile the consumer price index, to be released Thursday, is
expected to show inflation rose only 0.2% in September.
U.S. stock markets will be open Monday, though government
offices will close for the Columbus Day holiday.
IBM's Earnings To Rise; Intel's Likely Down
Two tech giants are among the companies posting third-quarter
results next week. International Business Machines Corp. (IBM),
slated to report Thursday, is expected to show higher earnings but
slightly lower sales, and services are likely to be one of the key
yardsticks by which Big Blue's business is measured. Intel Corp.
(INTC), the world's biggest semiconductor company, reports Tuesday,
and its results are likely to be down significantly from a year
earlier.
Intel rival Advanced Micro Devices Inc. (AMD), which reports
Thursday, is set to post its 12th-consecutive quarterly loss. Also
reporting Thursday is search-engine giant Google Inc. (GOOG), which
is seen posting higher results on cost cutting and advertisers'
preference for online search ads during the economic downturn.
Investment Banks Profit; Others To Show Losses
While JPMorgan Chase & Co. (JPM), the largest U.S. bank by
market capitalization, and investment bank Goldman Sachs (GS) are
expected to post profits, Bank of America Corp. (BAC) and Citigroup
Inc. (C), the No. 2 and No. 4 banks, respectively, are expected to
post losses.
JPMorgan, which reports Wednesday, was helped by investment
banking but likely had a loss in its credit-card business. By
contrast, earnings of Goldman, which reports Thursday, are expected
to more than double on improvement in the capital markets and its
investment in the Industrial & Commercial Bank of China Ltd.
(1398.HK). Its shares climbed roughly 20% during the quarter. Big
banks continue to suffer from higher loan losses and weakness in
capital markets, mortgage banking and commercial lending. Bank of
America reports Friday; Citigroup a day earlier.
J&J's Profit Likely To Be Moderately Lower
Health-care products giant Johnson & Johnson (JNJ) is
expected to report moderately lower earnings Tuesday, in part
because of the loss of patent protection on such top-grossing
products as antipsychotic drug Risperdal and epilepsy medication
Topamax. Sales of its anti-anemia product Procrit will also likely
be lower, due to tighter prescribing and Medicare-reimbursement
restrictions. J&J's vast medical-devices unit is expected to
produce mixed results.
GE May Comment On Comcast-NBC Merger Talks
General Electric Co. (GE) posts third-quarter results Friday,
two weeks after the conglomerate confirmed talks are under way to
merge its NBC Universal media unit with Comcast Corp.'s (CMCSA)
television networks. Investors will be closely scrutinizing GE's
comments regarding the matter, which can only go through if Vivendi
SA (VIVDY, VIV.FR) agrees to sell its 20% NBC Universal stake.
Investors also will be taking the pulse of GE's bellwether
industrial businesses for indications the economy is on the mend.
GE is forecast to earn 20 cents a share, off significantly from 45
cents a year earlier.
Small Rise Expected In Consumer Price Index
The CPI is expected to show an even-smaller increase for
September than a month earlier. The measure of inflation, due out
Thursday, rose slightly more than expected at 0.4% in August; the
latest figure is seen at 0.2%.
The government will report on September retail sales and August
business inventories Wednesday, the same day the Federal Reserve
releases minutes from its recent Federal Open Market Committee
meeting. Regional manufacturing reports will be issued by the New
York and Philadelphia Feds on Thursday, and the Reuters/University
of Michigan consumer confidence index will be released the
following day. Data on September industrial production also are due
next Friday.
Among appearances by Fed officials: St. Louis Fed President
James Bullard will speak Sunday, Treasury Secretary Timothy
Geithner will speak Monday and Fed Vice Chairman Donald Kohn will
speak Tuesday at the National Association for Business Economics'
51st annual meeting in St. Louis; New York Fed President William
Dudley will speak Tuesday in New York; and Dallas Fed President
Richard Fisher will speak next Friday in Dallas.
Senate Panel To Vote Tuesday On Health-Care Overhaul
The Senate Finance Committee will vote Tuesday on an $829
billion health-care bill, after months of efforts to gain consensus
on the massive overhaul. The bill has been shepherded by Chairman
Max Baucus, D-Mont., through lengthy negotiations since early
spring. A cost estimate of the measure released this week by the
nonpartisan Congressional Budget Office cleared the way for a
committee vote.
Ex-Bear Stearns Hedge Fund Managers Go On Trial
A high-profile securities-fraud trial involving two former Bear
Stearns hedge-fund managers, Matthew Tannin and Ralph Cioffi, is
scheduled to begin Tuesday in New York. The funds collapsed in the
summer of 2007, costing investors roughly $1.4 billion, and Bear
Stearns was sold off in a fire sale in early 2008. Prosecutors
accused the men of misleading investors about the health of the
funds. They have pleaded not guilty and said they, like their
investors, were victims of a faltering market.
Financial Regulators At Senate Panel Hearing
The Senate Banking Committee, which is drawing up a revamp of
the financial regulatory system, plans to hear from top regulators
Wednesday, giving agencies another opportunity to defend their turf
as overhaul efforts move forward. Scheduled to testify are leaders
of the Federal Deposit Insurance Corp., Federal Reserve and
Comptroller of the Currency. The committee's chairman, Christopher
Dodd, D-Conn., has suggested consolidating oversight of banks into
one regulator, an idea that has its detractors in the House of
Representatives and the Obama administration.
Lehman To Ask Judge To Force Return Of Assets
Lehman Brothers Holdings Inc. (LEHMQ) will ask a New York
bankruptcy judge Thursday to modify his order approving the sale of
the collapsed investment bank's broker-dealer business to Barclays
Plc (BCS, BARC.LN). Lehman is trying to force the U.K. bank to
return billions in excess assets it says were transferred during
the hasty sale conducted in the days after Lehman's collapse in
September 2008. Barclays has called Lehman's claims
"meritless."
IRS Amnesty Deadline For Hiding Assets Abroad
Thursday is the deadline for U.S. citizens who have evaded taxes
by hiding their foreign holdings to decide whether to turn
themselves in to an Internal Revenue Service amnesty program. The
deadline was postponed from Sept. 30 for the special voluntary
disclosure program that began in March after Swiss bank UBS AG
(UBS, UBSN.VX) turned over the names of more than 250 account
holders as part of a criminal settlement.
Business Council To Discuss Energy, Climate
Policy options for keeping U.S. businesses competitive in an era
of energy and climate change will be the theme of the Business
Council's fall meeting Thursday and Friday near Raleigh, N.C. More
than 70 of the top executives of North America's largest companies
are scheduled to attend. Survey results on members' outlook for the
economy will be released. Several members of Congress also are
expected.
Frankfurt International Book Fair Opens Wed
The Frankfurt International Book Fair, the largest in the world,
runs from Wednesday through next Sunday. It is expected to attract
7,000 exhibitors from more than 100 countries. The previous fair
had 286,000 visitors. This year, the fair's guest country of honor
is China. Some 2,000 Chinese publishers, artists and writers are
expected to attend, and the first of hundreds of exhibits, readings
and author tours began this spring.
Conferences
Among the significant conferences next week are the Roth Capital
Partners China Conference from Monday through Wednesday in Miami
Beach, Fla.; Dow Jones Newswires VentureWire Showcase Conference on
Tuesday and Wednesday in Redwood City, Calif.; and Standard &
Poor's Healthcare Credit Trends Conference on Thursday in New
York.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
kathy.shwiff@dowjones.com
(Robert Tita, Bob Sechler and other Dow Jones Newswires staff
contributed to this report.)