By Wallace Witkowski, MarketWatch
SAN FRANCISCO (MarketWatch) ? Earnings outlooks as U.S. companies approach the so-called ?fiscal cliff? are likely to gain more attention from investors in the coming week than the quarterly results themselves, according to analysts.
With a third of the Dow Jones Industrial Average /quotes/zigman/627449 DJIA +1.62% ? and more than 80 S&P 500 Index /quotes/zigman/3870025 SPX +1.65% ? companies reporting in the coming week, most analysts are going into the second-quarter earnings season with lowered expectations and an eye on the next quarter.
Next week: Citi, Google, Bernanke
A flood of large-cap companies release results next week, including Citigroup, Goldman Sachs, Bank of America, Google, Microsoft and IBM. U.S. economic data also picks up, with June retail sales and industrial production, and the July Philly Fed. And Ben Bernanke speaks.
?Markets would rather see the guidance,? said John Canally, an investment strategist at LPL Financial. ?Next week, you want to see improved or unchanged.?
Therein lies the challenge, however, with U.S. economic growth hitting more speed bumps and similar slowdowns in Europe and China causing revenue to dry up at multinationals.
China reported its economy expanded by 7.6% in the second quarter, its weakest rate of growth in three years. Read more on China.
A weaker euro relative to the dollar compounded with European consumers tightening belts also puts a crimp in international revenue for U.S. companies. Read how the strong dollar is hurting U.S. bottom lines.
On Friday, equity markets reacted favorably to earnings from J.P. Morgan Chase & Co. /quotes/zigman/272085/quotes/nls/jpm JPM +5.96% ?and Wells Fargo & Co. /quotes/zigman/239557/quotes/nls/wfc WFC +3.23% . The gains Friday were enough to give both the Dow /quotes/zigman/627449 DJIA +1.62% ?and the S&P 500 Index /quotes/zigman/3870025 SPX +1.65% ?slight gains on the week and break multi-session losing streaks. Read more on stocks Friday.
Europe's week ahead: Nokia
Earnings season is in full flow with Nokia, Ericsson and Actelion reporting next week. Investors will also looking out for U.S. retail sales data and German business sentiment. Sara Sjolin and Nina Bains report. Photo: Getty Images
Of the 30 S&P 500 companies reporting earnings in the past week, 70% have reported earnings above consensus estimates, according to John Butters, senior earnings analyst at FactSet.
Two things to look out for in the coming earnings week are how globally exposed companies are dealing with uncertainty out of Europe for the rest of the year, and whether more chief executives will start addressing the looming U.S. fiscal cliff, said Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC.
Luschini said investors want to hear more from CEOs on how they are dealing with the domestic uncertainties of possible tax increases and government spending cuts now, and how that is affecting their investment and hiring decisions.
The strategist referred to a Financial Times opinion piece written by Honeywell CEO David Cote urging more business leaders pressure Washington to take more definitive actions on curbing growing U.S. debt before the bond market does. Honeywell reports quarterly earnings on Wednesday. Read more on Honeywell CEO op-ed.
On Monday, earnings from Citigroup Inc. /quotes/zigman/5065548/quotes/nls/c C +5.42% ?and Gannett Co. /quotes/zigman/227199/quotes/nls/gci GCI +0.49% are scheduled.?
The following day Johnson & Johnson Inc. /quotes/zigman/230812/quotes/nls/jnj JNJ +1.33% ?, Coca-Cola Co. /quotes/zigman/222647/quotes/nls/ko KO +0.84% , Goldman Sachs Group Inc. /quotes/zigman/188479/quotes/nls/gs GS +3.63% ?, Intel Corp. /quotes/zigman/20392/quotes/nls/intc INTC +2.06% , and Yahoo Inc. /quotes/zigman/59898/quotes/nls/yhoo YHOO +0.32% ?report.
On Wednesday comes quarterly results from Bank of America Corp. /quotes/zigman/190927/quotes/nls/bac BAC +4.55% ?, American Express Co. /quotes/zigman/217470/quotes/nls/axp AXP +1.76% ?, IBM /quotes/zigman/230066/quotes/nls/ibm IBM +1.59% ?, Abbott Laboratories /quotes/zigman/216393/quotes/nls/abt ABT +0.49% ?, Yum Brands Inc. /quotes/zigman/303422/quotes/nls/yum YUM +2.50% ?, and Qualcomm Inc. /quotes/zigman/77257/quotes/nls/qcom QCOM +2.33% ?
/quotes/zigman/627449
US : DJ-Index
Volume: 121.08M
July 13, 2012 4:30p
/quotes/zigman/3870025 US : S&P Base CME
Volume: 522.33M
July 13, 2012 4:34p
/quotes/zigman/272085/quotes/nls/jpm US : U.S.: NYSE
Volume: 83.00M
July 13, 2012 4:01p
Market Cap$129.58 billion
Rev. per Employee$429,894
/quotes/zigman/239557/quotes/nls/wfc US : U.S.: NYSE
Volume: 39.55M
July 13, 2012 4:00p
Market Cap$174.63 billion
Rev. per Employee$337,207
/quotes/zigman/627449 US : DJ-Index
Volume: 121.08M
July 13, 2012 4:30p
/quotes/zigman/3870025 US : S&P Base CME
Volume: 522.33M
July 13, 2012 4:34p
/quotes/zigman/5065548/quotes/nls/c US : U.S.: NYSE
Volume: 48.42M
July 13, 2012 4:00p
Rev. per Employee$389,684
/quotes/zigman/227199/quotes/nls/gci US : U.S.: NYSE
Volume: 3.30M
July 13, 2012 4:02p
Rev. per Employee$167,978
/quotes/zigman/230812/quotes/nls/jnj US : U.S.: NYSE
Volume: 13.24M
July 13, 2012 4:00p
Market Cap$185.96 billion
Rev. per Employee$551,450
/quotes/zigman/222647/quotes/nls/ko US : U.S.: NYSE
Volume: 6.65M
July 13, 2012 4:00p
Market Cap$172.90 billion
Rev. per Employee$323,023
/quotes/zigman/188479/quotes/nls/gs US : U.S.: NYSE
Volume: 4.59M
July 13, 2012 4:00p
/quotes/zigman/20392/quotes/nls/intc US : U.S.: Nasdaq
Volume: 35.98M
July 13, 2012 4:00p
Market Cap$124.47 billion
Rev. per Employee$540,040
/quotes/zigman/59898/quotes/nls/yhoo US : U.S.: Nasdaq
Volume: 11.81M
July 13, 2012 4:00p
Rev. per Employee$353,977
/quotes/zigman/190927/quotes/nls/bac US : U.S.: NYSE
Volume: 177.15M
July 13, 2012 4:00p
Rev. per Employee$389,858
/quotes/zigman/217470/quotes/nls/axp US : U.S.: NYSE
Volume: 5.01M
July 13, 2012 4:01p
Rev. per Employee$525,504
/quotes/zigman/230066/quotes/nls/ibm US : U.S.: NYSE
Volume: 3.93M
July 13, 2012 4:01p
Market Cap$212.14 billion
Rev. per Employee$246,865
/quotes/zigman/216393/quotes/nls/abt US : U.S.: NYSE
Volume: 4.65M
July 13, 2012 4:00p
Market Cap$102.48 billion
Rev. per Employee$431,506
/quotes/zigman/303422/quotes/nls/yum US : U.S.: NYSE
Volume: 4.61M
July 13, 2012 4:01p
/quotes/zigman/77257/quotes/nls/qcom US : U.S.: Nasdaq
Volume: 10.13M
July 13, 2012 4:00p
Rev. per Employee$819,057
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