NEW YORK (CNN/Money) - Investors likely will continue to be cautious ahead of next week's Federal Reserve meeting that could usher in higher interest rates, the handover of power in Iraq and a handful of economic readings out at the end of this week.

Tuesday, the markets will likely respond to earnings news from palmOne Inc. (PLMO: Research, Estimates), which spiked after the close after posting a fourth-quarter profit compared with a year-ago loss that beat Wall Street forecasts.

Shares of palmOne rose 16.5 percent to $25 on Inet Monday after the handheld computer maker said net income for the fourth quarter was $13.3 million, or 27 cents a share. Analysts at Thomson First Call estimated net income to come in at 13 cents a share.

Goldman Sachs (GS: Research, Estimates) and Morgan Stanley (BRX: Research, Estimates) will report earnings Tuesday, as well as retail grocer Kroger (KR: Research, Estimates) and online lottery company GTECH. (GTK: Research, Estimates)

Dick's Sporting Goods Inc. stock also jumped after the bell Monday on an announcement that it will buy Galyan's Trading Co. and raise its earnings outlook for 2004.

Dick's Sporting Goods (DKS: Research, Estimates) advanced 6.8 percent to $30.53 on Inet, and Galyan's Trading Co. (GLYN: Research, Estimates) stock soared 50.5 percent after the bell.

After hours, retailer Target Corp. (TGT: Research, Estimates) edged lower 0.5 percent after the company announced that June same-store sales at outlets open at least one year are expected to come in at the low end of forecasts.

In other news, Tiffany has sued eBay Inc. for trademark violations, claiming the online auctioneer let counterfeit items be sold on its Web site.

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eBay (EBAY: Research, Estimates) shares edged higher 0.2 percent after hours on Inet. Tiffany shares were flat after the bell.

The nation's largest integrated steel maker, International Steel Group, completed its acquisition of bankrupt Georgetown Steel Co., paying $18 million and assuming company liabilities.

ISG (ISG: Research, Estimates) shares lost fell 0.7 percent to close at $29.78 Monday on the New York Stock Exchange.

MGM Mirage Inc. (MGG: Research, Estimates) announced late Monday it will build a major hotel-casino in the Chinese territory of Macau, one of the most lucrative gambling markets in the world. MGM Mirage stock gained 0.7 percent at the close.  

-- from staff reports and wires