Stage is set for another big rally on Wall Street
One-third of Dow, and crowd favorite Apple, to report earnings
By Rodrigo Campos
Reuters
updated 10/16/2011 1:06:14 PM ET
NEW YORK — With one-third of the Dow components and crowd favorite, Apple, reporting results this week, U.S. stocks are setting the stage for another week of gains.
After the steepest two-week rally in more than two years, the S&P 500 is at the top end of its range for the past two months.
The benchmark closed Friday above 1,220 for the first time since early August, and bets against the recent rally could start to pile up.
But Monday earnings and guidance from IBM, followed by results from Apple, Coca-Cola and Intel on Tuesday could give shorts a reason to put their guns down. The S&P could be on its way to a third straight winning week — a streak not seen since February.
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Ten of the 30 Dow components, including Microsoft , American Express and Johnson & Johnson , are scheduled to report quarterly results this week.
Big financial names expected to report include Citigroup , Goldman Sachs and Wells Fargo, which follow Thursday's earnings disappointment from JPMorgan Chase & Co that battered the sector.
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Among the main economic indicators due this week are industrial production and capacity utilization on Monday; producer and consumer inflation on Tuesday and Wednesday, respectively; and weekly jobless claims on Thursday. The week closes with the final reading of the Reuters/University of Michigan consumer sentiment index.
http://www.msnbc.msn.com/id/44921587/ns/business-stocks_and_economy/
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