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Focus May Turn Back to Economy & Earnings

Now that Europe’s one-day summit is out of the way, the market focus may shift back to the U.S. economy and what is bothering stocks.

Oliver Quilla for CNBC.com
Dell’s [DELL  15.80     0.30  (+1.94%)   ] earnings may be one of those things Wednesday morning. Its after-the-bell earnings report Tuesday beat estimates on the bottom line, but missed on the top line. Dell shares fell nearly 8 percent, as it also forecast flat revenues in the third quarter and lowered full-year revenue growth to 1 to 5 percent, from 5 to 9 percent.

Whether Dell is a forewarning for Hewlett-Packard [HP  57.42     -2.70  (-4.49%)   ], which reports earnings Thursday, has yet to be seen, but it may spill into other tech names. Skull Candy, a recent IPO, was also down sharply in after hours trading on disappointing earnings.
There are a number of companies reporting Wednesday morning including Deere [DE  75.16     -1.34  (-1.75%)   ], Target [TGT  49.37     1.25  (+2.6%)   ], Abercrombie and Fitch [ANF  71.02     -0.69  (-0.96%)   ], Staples [SPLS  14.22     0.52  (+3.8%)   ] and Chico’s FAS [CHS  12.61     -0.43  (-3.3%)   ]. After-the-bell reports are expected from JDS Uniphase [JDSU  11.91     -0.43  (-3.48%)   ], Limited Brands [LTD  34.83     -0.27  (-0.77%)   ] and PetSmart.
The major U.S. economic report Wednesday is PPI inflation data, at 8:30 a.m. Mortgage applications data is reported at 7:30 a.m. Dallas Fed President Richard Fisher speaks on Federal Reserve functions and monetary policy at 1:20 p.m. ET at a forum, hosted by the Dallas Fed.

FULL STORY HERE

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