Trouble in market/ sector is always reflected in earnings trends. Keep an eye on upcoming earnings.
The week of Apr. 10 is when the earnings-reporting season for the first quarter begins in earnest. As seen in the table below, which compares Standard & Poor's equity analysts' estimates on December 31, 2005, with those as of April 4, 2006, S&P believes companies in the S&P 500 will have increased operating results by 11%, driven by above-market gains for the Energy, Health Care, and Industrial sectors.
Below-market gains are expected to come from Financials, Information Technology, Telecom Services, and Utilities, along with year-over-year declines in earnings likely to be recorded by the Consumer Staples and Materials sectors.
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