HP, Inflation Data Top the Week’s News

Quarterly earnings from HP and inflation data will top the financial headlines this week.

HP will release its fiscal third-quarter results after the close on Tuesday. Analysts are looking for a healthy 29% jump in earnings to 31 cents a share, and sales are expected to rise 8.4% to $20.47 billion. Analysts expect the company to fare better than Dell did last week, when it reported disappointing results and guidance. Investors will also be looking for more detail on HP’s massive restructuring plan, including which areas the company’s planned 9.6% workforce reduction will come from.

Applied Materials will also reports its results late Tuesday, and Network Appliance will follow after the close on Wednesday.

Retail and wholesale inflation reports on Tuesday and Wednesday will give investors some insight into the effect of persistently high oil prices on inflation. Economists think inflation rose about a half percent last month, with the core rate — which excludes food and energy prices — growing at less than half that rate, as price pressures have yet to appear in the core rates. But high prices at the pump could begin to affect consumer spending, and retail earnings reports due out Tuesday morning will be watched closely for signs of weakening consumer spending.

Stocks rose Monday after oil prices fell and Agilent posted strong earnings and announced a restructuring plan.

The Nasdaq rose 10 to 2167, the S&P climbed 3 to 1233, and the Dow gained 34 to 10,634. Volume declined to 1.55 billion shares on the NYSE, and 1.38 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 17-12 on the Nasdaq. Upside volume was 59% on the NYSE, and 64% on the Nasdaq. New highs-new lows were 120-18 on the NYSE, and 98-38 on the Nasdaq.

After the close, Gateway fell after missing estimates and warning.

During the day, Agilent surged 15% on strong earnings and a restructuring plan.

Apple hit a new all-time high on positive comments from analysts.

Salesforce.com tumbled 6% on valuation concerns ahead of its earnings report due out late Wednesday.

Overland lost 9.5% after reporting an unexpected loss.

PFSweb tumbled 24% after reporting a loss.

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