Oct. 17 - Investors are turning their attention back to Wall Street-focusing on earnings, the economy and the Fed now that the government debt crisis has been temporarily averted. Bobbi Rebell reports.
Markets pivoting from D.C. back to Wall Street. And lo and behold it's earnings season. While overall the majority of earnings have beat forecasts- companies are still struggling when it comes to revenue growth. And not surprisingly-with all the chaos down in DC- companies have been cautious in their outlooks. Thomson Reuters' senior research analyst Greg Harrison: SOUNDBITE: GREG HARRISON, SENIOR RESEARCH ANALYST, THOMSON REUTERS (ENGLISH) SAYING: "They are trying to set a very low bar for the expectations out there, and there is not really a single factor they are pointing to. Most companies are saying it's just general weakness in the economy. General uncertainty about government policies, and so that is leading them to try to hold down their expectations." Expectations are also low for getting an accurate read on the U.S. economy. Government agencies have to play catch up. And even when data is released in the coming days and weeks- it will be murky at best. Decision Economics Cary Leahey: SOUNDBITE: CARY LEAHEY, ECONOMIST, DECISION ECONOMICS (ENGLISH) SAYING: "Any number that is moderately weaker than expected for the next six weeks will be brushed off because it will be tainted by the slowdown and they will say just wait for the bounce back." The big one to watch- the jobs report on October 22nd. As for the Fed- after surprising the markets by not cutting back on bond buying in September- a move is now not expected until 2014. SOUNDBITE: CARY LEAHEY, ECONOMIST, DECISION ECONOMICS (ENGLISH) SAYING: "You have to push it off for two reasons. One is you don't have a lot of information that is reliable, and secondly what information you have probably tells you, you ought to nick down your growth forecast and finally you do not want to be a political football at this point in time and particularly when you are making a change in regime from the Chairman to the Vice Chairman." He adds that the Fed will probably wait until their first press conference of 2014- that is on March 20th.