Earnings reports reveal economy's health

Several companies will report their fourth quarter earnings this week. Investors will look to these reports as early indicators of how far the economy has slowed. \nAt this point, nearly a quarter of the companies in The Standard & Poor's 500 have released their earnings. Some analysts on Wall Street were expecting dismal results, but it appears profits might not be as low as predicted. \nChuck Hill, director of research for First Call/Thomson Financial, said profits are down about 5.2 percent from a year ago.\n"Earnings don't seem as bad as the fear that was created over this quarter," said Barry Hyman, chief investment officer for Weatherly Securities, told CNBC.com. "We are quickly getting through the earnings season. We are seeing great money flow coming into tech again on the belief that things aren't so bad and interest rates will aid growth in the future."\nExpected to Report Earnings this Week\nAmerican Express, Chevron, Coca-cola, Compaq, Dupont, Gillette, Honeywell, International Paper, JDS Uniphase, Johnson & Johnson, Sunoco, Texas Instruments, Qualcomm.\nLast Week\nThe Dow Jones Industrial Average finished last week up 62 points. The index is down 2 percent for the year. The Nasdaq Composite Index also finished the week higher, gaining 5.5 percent. The Nasdaq has performed well this year, and is now up more than 12 percent.\nStock News\nMicrosoft posted earnings of 47 matching analysts' estimates, according to First Call/Thompson Financial. Microsoft reported that net income rose 7 percent and revenue rose 8 percent. The software maker also announced that it is comfortable with its previous earnings guidance. \nHome improvements retailer Home Depot warned Friday that its fourth quarter earnings would be short of analysts' estimates. Wall Street had expected the company to earn 24 cents per share, according to First Call/Thompson Financial. The company blamed the shortfall on a slowing economy and falling building material prices.\n"The tough economy has put tremendous pressure on fourth quarter sales performance and increased competition for share of the consumers' wallets," said Bob Nardelli, Home Depot president and chief executive officer.\nIBM reported net income of $1.48 per share, beating expectations of $1.46 per share, according to First Call/Thompson Financial. The company also said it is comfortable with 2001 earnings per share estimates of $4.99.\nFinal Note\nThursday, Federal Reserve Board Chairman Alan Greenspan will speak to Congress. Many investors will carefully monitor his testimony to determine if and by how much the Fed will cut interest rates. And the energy crisis in California will give Wall Street something to consider.