First-quarter corporate reports reach a peak next week, with 40%
of the Dow Jones Industrial Average components and a quarter of
those in the Standard & Poor's 500 Index releasing results.
Data on March home sales are expected to show another decline in
sales of existing homes, but analysts predict a small rise in
new-home sales.
And U.S. auto makers General Motors Corp. (GM) and Chrysler LLC
are expected to solidify their plans - especially Chrysler, which
is trying to work out a deal with Fiat SpA (F.MI).
Big, Regional Banks Report On 1Q
More banks will post first-quarter results next week, after
Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and
Citigroup Inc. (C) surprised Wall Street with higher-than-expected
earnings this week. Bank of America Corp. (BAC) reports Monday, and
Wells Fargo & Co. (WFC), which previewed its results last week,
is expected to post a $3 billion profit Wednesday.
Among the regional banks reporting are KeyCorp (KEY), Regions
Financial Corp. (RF) and U.S. Bancorp (USB). Being so tied to the
housing market, regional banks are more likely to reflect the drop
in consumer spending and the economic downturn than larger
banks.
Meanwhile, Citi holds its annual meeting Tuesday, and some
proxy-advisory firms have recommended shareholders withhold votes
for or against some incumbent directors, saying they failed to
fulfill their risk-management responsibilities.
IBM, Apple, Microsoft On Tap
A number of major tech companies will detail their latest
quarter's results next week, starting with International Business
Machines Corp. (IBM) and Texas Instruments Inc. (TXN) on Monday.
Most firms are likely to have lower profits, though IBM is forecast
to match its year-earlier profit.
Apple Inc. (AAPL) will post results Wednesday in its first
reporting period in years without Chief Executive Steve Jobs at the
helm; he is on a medical leave. Wall Street expects lower earnings
with revenue up about 6%. Software giant Microsoft Corp. (MSFT),
which reports Thursday, is seen recording a 17% decline in
per-share earnings.
Big Drug Makers Report Amid Mergers
Some of the largest U.S. drug makers will disclose first-quarter
results as the industry is undergoing a major consolidation wave.
Eli Lilly & Co. (LLY), which reports Monday, last fall bought
ImClone as it pushes further into biotechnology drugs. Merck &
Co. (MRK) and merger partner Schering-Plough Corp. (SGP) report
Tuesday.
Big Food Firms Likely To Hold Up
Earnings of some of the largest U.S. food companies are expected
to fall less than others' amid the recession. Coca-Cola Co. (KO),
which reports Tuesday, and PepsiCo Inc. (PEP), on Thursday, are
likely to maintain solid growth with the help of international
sales.
McDonald's Corp. (MCD) and Taco Bell, Pizza Hut and KFC parent
Yum Brands Inc. (YUM), both reporting Wednesday, have benefitted as
consumers opt to eat out at cheaper places.
UPS, Railroads To Post 1Q Results
A number of freight-transport companies, including United Parcel
Service Inc. (UPS) and major railroads Burlington Northern Santa Fe
Corp. (BNI) and Union Pacific Corp. (UNP), will shed more light on
the state of the economy when they post first-quarter results next
week.
The sector, often viewed as a barometer of overall economic
activity, has been suffering major volume declines, and railroad
CSX Corp. (CSX) recently signaled more of the same for the second
quarter. UPS, the world's largest package-delivery company, reports
Thursday, as do Burlington Northern and Union Pacific.
Low Demand, Charges Hurt Caterpillar
Caterpillar Inc. (CAT), the world's largest builder of
construction machinery, will report first-quarter data Tuesday.
Weak demand for equipment and large charges for plant closings and
layoffs announced earlier are expected to drag down sales and
profit. Results from Caterpillar's customer and dealer finance unit
will likely attract increased attention as investors look for
indications of stress from rising loan defaults.
CME Profit, Clearinghouse Details Seen
CME Group Inc. (CME), the world's biggest futures exchange
operator, is expected to report a first-quarter profit Thursday,
but CME market volumes remain well below year-ago levels and fees
collected from trading have declined throughout the quarter. The
company also is likely to provide details on the launch of its
long-gestating clearinghouse for credit derivatives, approved by
regulators in March.
New-Home Sales Could Climb Again
March new home sales, to be reported April 24, are estimated to
rise 0.9%, while another decline is likely in sales of existing
homes, which the National Association of Realtors will detail a day
earlier. Sales of new homes rose in February for the first time in
seven months.
A government report on March durable-goods sales also is due
April 24. On Monday, the Chicago Fed will detail March
manufacturing activity in that region and the private Conference
Board releases its March Index of Leading Economic Indicators.
Among appearances by Federal Reserve officials: Vice Chairman
Donald Kohn, Minneapolis Fed President Gary Stern and Atlanta Fed
President Dennis Lockhart will speak Saturday in Nashville; and
Chicago Fed President Charles Evans speaks Monday in Chicago.
U.S. Auto Makers' Plans Expected
The futures of GM and Chrysler could take more solid form next
week, especially as the federal government's April 30 deadline for
Chrysler to strike a deal with Italian car maker Fiat draws near.
An analyst said Friday that Fiat's management seems to be working
hard toward an alliance and to avoid a Chrysler bankruptcy.
GM is likely to announce more job cuts as well as plans for its
Hummer and Saturn brands. The government also is preparing to lend
GM an additional $5 billion and Chrysler $500 million, with an
announcement of the fresh lending package expected next week, the
Detroit News reported Friday.
In addition, Ford Motor Co. (F), which has not sought government
loans, will report first-quarter results April 24.
Businesses, Media Celebrate Earth
Businesses will mark Earth Day on Wednesday with a variety of
promotions, ranging from retailers contributing a portion of sales
to the environmental causes to companies collecting cell phones and
computers for recycling. Many media outlets will offer special
programming about how to "go green" by reducing energy use.
First observed in 1970, Earth Day originally had 20 million
participants. Today, more than a half-billion individuals are
expected to take part in some program connected with the event.
G8 Meets On Agriculture, Environment
Agriculture ministers from the eight largest industrial
countries are meeting through Monday in Italy to discuss ways to
fight hunger and boost food security. While there, U.S. Department
of Agriculture Secretary Tom Vilsack will hold bilateral meetings
with China's Vice Minister of Agriculture Niu Dun and agriculture
ministers from Japan, Egypt and Russia.
The gathering will be followed by a meeting of G8 environment
ministers from Wednesday through Friday.
Conferences
Among the significant conferences next week are the American
Association for Cancer Research Annual Meeting from Saturday
through Wednesday in Denver, Independent Petroleum Association of
America's annual Oil & Gas Investment Symposium from Monday
through Wednesday in New York, Dow Jones Newswires Alternative
Energy Innovations Spring Conference on Tuesday and Wednesday in
Redwood City, Calif., and Susquehanna International Group Consumer
Focus Forum on Thursday in New York.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
kathy.shwiff@dowjones.com
(Bob Sechler, Robert Tita, Jacob Bunge and other Dow Jones
Newswires staff contributed to this report.)