By Ben Fox Rubin
Fourth-quarter earnings reports will continue at a brisk pace
next week, with many big and notable companies including Dell Inc.
(DELL), Wal-Mart Stores Inc. (WMT) and American International Group
Inc. (AIG) coming out with their latest results.
No initial public offerings are expected to price next week.
Also, markets will be closed Monday for Presidents Day.
Dell, Hewlett-Packard Reporting
PC-makers Dell Inc. and Hewlett-Packard Co. (HPQ) have both been
undertaking major changes as a watershed moment for computing
devices has mostly left them behind.
Earlier this month, Dell said it had reached a deal to take
itself private, as part of a $24.4 billion buyout that includes
founder Michael Dell and private-equity firm Silver Lake Partners.
The deal, designed to give the company breathing room to retool
away from the glare of the public market, has been criticized by
several shareholders, including T. Rowe Price Group Inc. (TROW),
for having too low of a value.
The company was once the world's largest PC maker and boasted a
market capitalization above $100 billion. But it largely has been
sidelined as tablets and smartphones became the more popular
devices and PC sales shrank.
Hewlett-Packard, meanwhile, has been working through a sweeping
restructuring effort, working to fold its once-dominant printing
business into its PC-making personal-systems group and centralize
many other functions.
Both companies are expected to post weaker earnings.
AIG's Quarterly Results, This Time Without Uncle Sam
American International Group is expected to report Thursday,
marking the first time in years it has operated without a
substantial investment from the U.S. Treasury Department.
In December, the Treasury Department sold nearly all its
remaining holdings in the insurer it helped rescue at the height of
the financial crisis. Although the government walked away from the
controversial bailout and made billions of dollars in the process,
the company found itself in hot water soon after as it considered
joining a shareholder lawsuit against the U.S. government.
Following a harsh public backlash, AIG's board soon after opted
against joining the suit.
Wall Street expects the company to swing to a quarterly loss due
to substantial losses stemming from superstorm Sandy.
Wal-Mart, Retailers, Restaurants and Many More to Report
Among several notable companies reporting are Wal-Mart Stores,
Dish Network Corp. (DISH), Barnes & Noble Inc. (BKS), Herbalife
Ltd. (HLF) and Tesla Motors Inc. (TSLA).
Wal-Mart's results have been challenged recently as its core
lower-income customers in the U.S. contend with high gasoline
prices and persistently high unemployment levels. But strong
expense-control efforts have helped its margins. The retailer is
expected to post higher earnings next week.
Several other retailers including Nordstrom Inc. (JWN) and
Abercrombie & Fitch Co. (ANF) will also release their latest
results, along with a handful of restaurant operators such as
Denny's Corp. (DENN), Jack in the Box Inc. (JACK), Cheesecake
Factory Inc. (CAKE) and Bloomin' Brands Inc. (BLMN).
Housing, Inflation Data Coming Out Next Week
New reports on housing and prices will dominate a
holiday-shortened trading week in the U.S.
January housing starts and building permits are scheduled to be
reported Wednesday. Economists surveyed by Dow Jones Newswires
think starts in January fell 3.0% to an annual rate of 925,000.
Building permits are projected to have increased by 1.2% to
920,000.
The January existing-home sales report is slated for Thursday.
Economists expect home resales fell 1.2% to a 4.88 million pace
last month, the second decline in a row.
Two major readings on inflation are also on next week's
calendar.
The producer-price index, due Wednesday, is expected to have
increased by 0.5% in January, according to economists. The core
index, which excludes food and energy, is forecast to be up
0.2%.
The broader consumer-price index will be reported Thursday. The
median forecast expects the CPI rose 0.1% in January, with the core
index up 0.2%.
--Kathleen Madigan contributed to this article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com