Alcoa first Dow giant to report

THE fourth-quarter earnings season gets under way on Wall Street this week with a trickle of companies, including the first of the Dow Jones 30 Industrials, reporting. Key economic data will also keep investors occupied.

Only 20 big firms unveil profits this week but among them is Alcoa, the first of the Dow components. It is expected to report a profit plunge on Tuesday to 10 cents a share, from 45 cents this time last year. Better news should come on Wednesday from accounting giant Accenture, formerly Arthur Andersen, which may post profits of 24 cents a share, a bit up on a year ago.

On Thursday, SunTrust, one of America's largest banking groups, is expected to report earnings of $1.22 a share, up from $1.12 a year ago. Financial firms are expected to be among the strongest in the reporting season as lower interest rates and a pick-up in stock market activity spurred a profits recovery in a sector that saw a 17% decline in the third quarter, according to earnings tracker First Call.

Factory orders, out on Tuesday, are seen dropping 2.6% after rising 7.1% a month before. Economists are looking for orders to rise over several months for an indication of a turnaround.

Inflation data is expected to reflect the sluggish economy. The Producer Price Index, on Friday, should fall 0.2%, after a 0.6% drop the month before. Minus food and energy, the core rate is thought to have risen 0.1%.

Data supplied by Thomson Global Markets