billary

Higher earnings boosting U.S. stocks
Dow up 4 weeks in a row after triple-digit gain Friday


WASHINGTON (CBS.MW) -- Better earnings have translated directly into
higher prices for U.S. stocks.


U.S. markets have moved higher throughout the second-quarter earnings
season and are close to their recent highs.

Another good week on the earnings front could obliterate those levels,
especially if the economic data continue to point to better times ahead.

The one-two punch of an improving economy and better-than-expected
earnings have given the markets a lift, said Jason Trennert, senior managing
director at the ISI Group. Listen to an interview with Trennert.

The Dow Jones Industrial Average ($INDU: news, chart, profile) gained
172 points on Friday, its best one-day gain since May 27, to finish at
9,285. With a 1 percent gain in the past week, the Dow has climbed higher
four weeks in a row.

After gaining about 29 percent between March and June, the S&P 500
($SPX: news, chart, profile) index has traded in a narrow range for the past
month. With Friday's 17 point gain, the broad market index gained 0.5
percent over the past week and now is off about 1.5 percent from its recent
highs reached two weeks ago.

The Nasdaq ($COMPQ: news, chart, profile) gained 1.7 percent on Friday
to record a 1.3 percent increase over the past week.

With about two-thirds of the top 500 companies already in,
second-quarter earnings are running about 8.1 percent ahead of year-ago
figures, according to Chuck Hill, director of research at Thomson First
Call.

Hill sees the final tally in the 9 to 10 percent range, well ahead of
the 5.2 percent year-over-year gains forecast at the beginning of the
season.

Two-thirds of the companies have beaten ****ysts' estimates, while
just 12 percent have underperformed, Hill said.

Hill said companies may be "overly conservative" because of Regulation
FD and the Sarbanes-Oxley securities law.

The bulk of the remaining companies will report in the coming week,
with the focus turning to the energy, consumer goods, financial and airline
sectors.

On Monday, Dow component American Express (AXP: news, chart, profile)
is scheduled to report, followed by DuPont (DD: news, chart, profile) on
Tuesday. ExxonMobil (XOM: news, chart, profile), Disney (DIS: news, chart,
profile) and Procter & Gamble (PG: news, chart, profile) report on Thursday.
See Earnings Calendar.

Past earnings are no guarantee of future performance, of course. "What
the market needs is a stronger economy accompanied by higher earnings and
stable interest rates," said Sung Won Sohn, chief economist at Wells Fargo.

Sohn sees a "tug-of-war" between earnings and interest rates, with the
possibility that higher interest rates could limit market advances. However,
he's confident the market is now in transition to an earnings-driven rally.

The economic data could be a hurdle in the short run. The calendar
over the coming week is full of top-drawer releases, including the July jobs
and purchasing managers' reports on Friday and the first look at
second-quarter gross domestic product on Thursday. See Economic Preview.

Job growth is expected to be marginally positive at about 13,000 after
firms cut 30,000 jobs in June. The jobless rate should remain at 6.4
percent. The Institute for Supply Management's manufacturing index is
expected to leap above the 50 percent growth/contraction marker to 51.9
percent.

With expectations in place for mild improvements in the weak labor
market and the depressed factory sector, the risk for the market is on the
downside.

Second-quarter GDP could be a downer, with the current consensus
honing in on growth of 1.5 percent, which would be the third straight
quarter of sub-2 percent growth.

Economists see much better performance in the third quarter, the key
to maintaining the growth in corporate profits.

On Friday, all 30 stocks in the Dow Jones Industrial Average rose,
boosting the Dow to a triple-digit gain on the day and sending investors
home for the weekend on an upbeat note. See Friday's Market Snapshot.

Nearly every industrial sector was higher after a surge of buying
rippled through the markets, starting with banks, computers, semiconductors
and networkers.

Rex Nutting is Washington bureau chief of CBS.MarketWatch.com.

war_criminal

Tell that to the millions of unempoyed workers and their families.


wpf

______________

billary

We are, every day.

Jobs is a lagging indicator. With the new tax cuts, low interest rates &
increasing consumer confidence the economy is coming back after the 911
disaster. Mr Bush deserves all the credit and jobs are soon to follow as
investment increases and profits return. Take an Eco 101 course. It might
help. If not read the book "Economics for idiots"


semiconductors

billary

I'll be sure to do that, right around Nov 2004.

FOUR MORE YEARS!!!!

basilod

"Jobs" is a lagging indicator all right, but there is a limit to any lag.
Beyond that limit it is becoming an indicator of the current state of the
economy. Prior to election of Bush I was hoping that victory of Bush over
Gore would be a boost to the economy (though I could see that both were
idiots and so I voted for Buchanan). My hopes and a big chunk of my
investments have been wiped out. He has proven to be one of the biggest
disasters for American economy ever. He is a spendthrift who just keeps
wasting the government budget. At the same time, trying to get popularity
he cuts taxes - almost the only input into the budget which he is wasting
with such ease.

julie

I have a deal for you:

If the DOW is at 12,000 on November 1, 2004, I'll cast my vote for the
drunken bush.

If it's not, you'll vote for any candidate other than the drunken
bush.

Deal?

genomeman

Hmmm...

What do you think had more of a negative effect of the economy?

a. 9/11
b. Bush's tax cuts

If you answered b, you are a ****ing idiot.

--

This nascent group of rag-tag
ex-food service slingers aims to
please you, the listener.

Check us out at:

http://echofission.com

genomeman

Actually, if the DOW is up around 10K with realistic P/E ratios that is
better then the DOW up at 14,000 with P/E rations that are ranked N/A (i.e.,
no earnings, as in internet bubble).

Oh...housing purchases at an all time high. That really bothers you libs
doesn't it?

How about durable sales? Also up.

Unemployment heading back down.

You guys should develop a strategy other then hope, and what is sad is that
you hope the country does poorly.

And that is why you will lose MORE senate seats in 2004, AND the Presidency
(again).

--

This nascent group of rag-tag
ex-food service slingers aims to
please you, the listener.

Check us out at:

http://echofission.com

war_criminal

That's what the uninitiated would say. In an economy increasingly
dependent on consumer spending rising unemployment is an leading indicator of contraction.

wpf

______________

julie

Spin it anyway you want; the market's in the toilet.


LOL. It's at the highest point in a DECADE. Unless of course you're
merely guessing at the future. In that case, guess me some winning
loto numbers too while you're at it. You'd probably be just as accurate with that.

More dittohead horseshit: To point out how poorly the drunken redneck
bush has handled the economy is somehow akin to wishing America a poor
future. You sure gobbled up that party line with a great big spoon,
goosestepper.