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Earnings again to set tone
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April 20, 1998: 8:51 a.m. ET
Wall Street to digest another slew of earnings reports from blue-chip firms
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NEW YORK (CNNfn) - Earnings reports from a handful of top-drawer companies were expected to set the tone of trading Monday on the heels of a strong opening in Europe and a steamy finish to last week on Wall Street.
The flood of earnings reports marks the first Monday in three weeks not marked by major merger news in the banking sector -- at least in North America.
After closing at its third record last week on Friday, up 90.93 to 9,167.50, the Dow Jones industrial average looked possibly to gain again Monday on the heels of surging European markets as merger speculation set the tone there.
Asian markets, however, were mixed as Japan investors await the details of the government's economic stimulus package.
Early Monday, the S&P Futures Index on the Globex trading system was up 0.9 points to 1,131.5, suggesting a modestly higher Dow opening.
Bonds were also looking for direction Monday, with the 30-year Treasury issue up just 1/32 of a point in price, with the yield at 5.87 percent.
Stock investors will have a lot to digest Monday, with earnings reports expected from blue-chip giants
Travelers Group (TRV), which rattled the financial sector weeks ago with its record $70 billion merger deal with Citicorp, beat analysts' estimates, reporting operating profits of 87 cents a share.
Travelers closed up 1-7/16 at 64-3/4 on Friday.
Fellow Dow issue AT&T (T) said operating profit rose to 77 cents a share, beating analysts' estimates, in the first quarter. AT&T said it expects revenue to grow 2 to 4 percent for the year. AT&T closed up 7/8 at 67-1/8 Friday.
Rival BellSouth (BLS), which gained 2-9/16 to 66-1/16 Friday, is expected to post profits of 78 cents a share Monday.
In the pharmaceutical sector, drug giant Eli Lilly (LLY), which soared 5-1/8 to 68-3/8 on Friday after clinical trials showed its Evista drug may prevent breast cancer, met its earnings estimates of 46 cents a diluted share.
Soaring orders for its new impotence pill Viagra could again boost drug rival Pfizer (PFE), which rose 4-1/2 to 105-3/16 Friday.
Among the other giants set to report quarterly earnings Monday: IBM (IBM), Schlumberger (SLB), Southern Co. (SO), Tellabs (TLAB) and Occidental Petroleum (OXY).
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