Earnings Preview: Week of Oct 22nd

To say the Markets took a breather Friday would be a grave understatement. The selling was balanced, on heavy volume and carried on throughout the day. The major indices; Dow Jones, Nasdaq, and S&P were all lower about 2.5%. Earnings season continues this week and more major companies will have the spotlight on them.

The week kicks off Monday with Computer and iPod/iPhone maker Apple Inc. (AAPL) reporting what is wildly expected to be another blowout earnings number for Technology stocks. Drug makers will also see action this week as Merck (MRK) and Schering-Plough (SGP) report Monday as well with Amgen (AMGN) and GlaxoSmithKline (GSK) set to follow later in the week.

AT&T (T) looks to capitalize on the popular iPhone as it highlights a busy Tuesday and software giant Microsoft (MSFT) headlines another busy earnings Thursday. Aerospace will feature also Lockheed Martin (LMT) reports as does Boeing (BA)

Investors and Traders will be looking for earnings to set a positive direction in order to drive further gains well into the Fall. Friday's pause was seen as healthy profit taking with a very cautious undertone. If the general earnings trend continues to be above-expectations than the market should have little resistance upwards, possibly no matter what the Fed does at its next Interest Rate decision.