NEW YORK (CNN/Money) - Corporate profits are now expected to fall for a record sixth straight quarter when Wall Street shuts the books on the June period, adding to the gloom for stock investors who haven't had a winning year since 1999.

But according to analysts, that dubious achievement is unlikely to have a serious impact on market psychology for the rest of the year, and according to First Call, both the third and fourth quarters of 2002 should see big rises in earnings year-on-year.

June-quarter profits for S&P 500 companies are expected to decline 0.2 percent from the year-ago period, making it the worst stretch since First Call began record-keeping in the late 1960s.

"It's conceivable that could happen," said First Call analyst Ken Perkins, who nonetheless calls a sixth drop unlikely because earnings for companies in the Standard & Poor's 500 index historically come in above Wall Street forecasts.

"I don't think it would have too much impact [on the rest of the year] even if we ended up with a decline," Perkins said. "The second quarter is essentially in the book."

"Psychologically it might be just one more thing [to worry about], but I think it's a just minor factor to the larger issues that are spooking the market right now," he added, noting the fear of more terrorist activity and concerns about the integrity of corporate numbers.

"If you look at the market historically, the market's always looking ahead," said Frank Gretz, market analyst at Shields & Co. "I hate to say it , but earnings are the least of the market's worries right now."

Gretz said the economy is "pretty much in two places right now." Investors aren't going to see an increase in technology earnings, but he said stocks in sectors such as defense, restaurants and homebuilding are doing well based on profit performance.

Looking ahead First Call said third-quarter profits are still expected to rise 17.2 percent from the year-ago period while fourth-quarter profits are expected to jump 28.6 percent from 2001.

And it should also be noted that predictions for lower second-quarter profits come with a quirk. The figures include the effects of a new accounting rule requiring companies to add certain costs of depreciation immediately as opposed to stretching them out.

Financial Accounting Standards Board Rule 142 says that goodwill, which companies book in some mergers and acquisitions, must no longer be automatically amortized, or written down, over a maximum of 40 years.

Technology companies that bought other tech firms in the late 1990s now must write down billions of dollars in goodwill, or the amount paid for a business that exceeds its fair market value. JDS Uniphase (JDSU: Research, Estimates) has reported big losses because of the rule, along with AOL Time Warner (AOL: Research, Estimates), the parent of CNN/Money.

Excluding the estimated costs of that goodwill provides a big boost for S&P 500 earnings, which would have gained 6.6 percent, according to forecasts.

So far, 937 companies have pre-announced second-quarter results, First Call said. Among them, 384, or 41 percent, have been warnings, while 226, or 24 percent, were in-line pre-announcements. And 327, or 35 percent, have been forecasts for upside surprises.