Sunday, July 12, 2009

Stocks hang hopes on tech, financial earnings next week

The Standard & Poor's 500 Index /quotes/comstock/21z!i1:in\x (SPX 879.13, -3.55, -0.40%) and Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 8,147, -36.65, -0.45%) fell for a fourth consecutive week this past week, the longest string of declines since the doldrums in March.

Analysts expect very steep drops in earnings on a year-over-year basis, though earnings compared to last quarter are forecast to improve, said Binky Chadha, chief U.S. equity strategist at Deutsche Bank. Though sequential earnings are usually not as important because of various seasonal factors, this time around they may be a better signal of how the broader economy -- and by extension, the market -- will do. (more)