Investors prepare for warnings

This week, investors will look at the National Association of Purchasing Management Index and the Labor Department's unemployment number for March. The NAPM number is scheduled for release Monday and is considered one of the best indicators of the condition in the factory sector. A reading above 50 is considered a sign of expansion, while a number below 50 signals economic contraction. The unemployment figure is scheduled for release Friday. Economists are calling for the unemployment rate to rise slightly to 4.3 percent. If the numbers provide signs that the economy is weaker than expected, many will be calling for lower interest rates.\nWall Street might also begin to look to next week, when companies typically announce that their earnings will not meet expectations. According to First Call/Thomson Financial, about 70 percent of the companies that issued earnings forecasts have said their results would be worse than analysts were expecting.\nLast Week\nFriday marked the close of the first three months of trading for the markets. The Dow Jones Industrial Average gained 79.72 to end the first quarter at 9,878.78. The Nasdaq Composite Index also managed a small gain, closing up 19.68 to finish the first quarter at 1840.26. For the quarter, The Dow Jones Industrial Average lost more than 8 percent while the Nasdaq suffered its worst quarter, loosing 25.5 percent.\n"This was a painful quarter. There were too many earnings warnings, which have lowered investor confidence and resulted in large sums of money leaving the market," Alan Ackerman, executive vice president of Fahnestock & Co told MSNBC.com. "The market might have a chance to become more stable in the next quarter as long as the Fed cuts interest rates and we have better news on the tax cut front."\nStock News\nLast Thursday, Tyson Foods said it was terminating its $3.2 billion agreement to acquire meat packing firm IBP. The company is alleging accounting irregularities at a unit of IBP. Friday, IBP filed a lawsuit against Tyson to force it to follow through on its acquisition. \n"Tyson's actions are completely unjustified by anything that has transpired and we will do what is necessary to protect our shareholders and our company," said IBP's chief executive officer, Robert Peterson, in a prepared statement. "We can only speculate that this is a classic case of buyer's remorse."\nLast Tuesday, handheld-device maker Palm reported earnings of 2 cents a share, a penny more than analysts were expecting. Palm also announced plans to cut 250 employees and said further reductions were possible. The company warned that it expects to report a fourth-quarter loss of about 8 cents a share. Analysts had been expecting the company to report a loss of 3 cents, according to First Call/Thomson Financial.\nFinal Note\nOne stock to watch this week is American Express. Last week, Business Week cited a rumor that Citicorp may be looking to purchase the company. Shares of American Express rose more than 7 percent Friday because of the possible takeover.