Wall Street prepares for earnings

This week marks the beginning of a period typically referred to as "earnings season." During this time, companies report quarterly earnings to Wall Street. It is also usually marked with warnings from companies who announce they will make less money than expected. Investors will be interested in not only corporate earnings, but also in the company's earnings guidance for future quarters.\nAfter last week's employment report came in weaker than expected, Wall Street will keep a close eye on economic reports to examine the possibility of the Federal Reserve Board easing rates before its May 15 meeting. Investors will also be monitoring the producer price index and retail sales data that will be released this week. Retail sales data, which will be released Thursday, provides an indication of consumer spending at retail establishments. A continued drop in retail sales could signal that consumer confidence is dropping. \nExpected earnings\nThis week, earning reports are expected from Boston Scientific, DoubleClick, E*Trade Group, Genentech, General Electric, Harley Davidson, Motorola, Redback Networks and Yahoo!.\nLast week\nFriday, the Nasdaq Composite Index closed at 1,720.36 -- down 64.64 points. The Dow Jones Industrial Average was also in the red, closing at 9,791.09 -- down 126.96 points. For the week, the Nasdaq dropped 6.5 percent while the Dow dropped about a percent.\nStock news\nFriday, California's largest utility company, Pacific Gas and Electric, filed for Chapter 11 bankruptcy protection. Saturday, the San Francisco Chronicle reported that Chairman Robert Glynn issued an internal memo late Thursday announcing bonuses and raises for eligible employees of PG&E. In response to the report, Gov. Gray Davis issued a brief statement saying, "PG&E's management is suffering from two afflictions: denial and greed."\nConsumer electronics retailer RadioShack announced Friday that its first quarter earnings will not meet predictions. The company blamed the shortfall on poor margins on mobile phones, satellite televisions and computers. RadioShack also lowered its earnings guidance for the full year. \nIn early trading Friday, Motorola's stock fell to its lowest level in eight years. Motorola, the second-largest mobile phone producer in the world, denied a published report that it was facing serious liquidity problems. \n "Motorola today is financially sound. Any suggestion or erroneous report that Motorola faces a serious liquidity problem is simply not correct and is not supported by fact," Motorola president Bob Growney said in a press release.\nFinal note\nAccording to First Call/Thomson Financial, approximately 70 percent of companies offering earnings guidance for the current quarter have announced they will fall short of expectations.