Filed at 8:18 a.m. ET
NEW YORK (Reuters) - Stocks are expected to climb at Wednesday's open as investors scan quarterly earnings reports for signs that the profit downturn is reaching a trough and bet that a recovery is on its way.
Traders were again taking heart in a stream of earnings that met or beat estimates from companies ranging from high-tech marquee names like Compaq Computer Corp. (news/quote) (CPQ.N) to blue-chip giants like Eastman Kodak Co. (news/quote) (EK.N).
``Investors are just looking for (something) less-negative to get encouraged about the market. They don't need overwhelming positives,'' said Ned Riley, chief investment strategist at State Street Global Advisors.
More that half of the companies in the Standard & Poor's 500 index have now issued their corporate scorecards in what is one of the heaviest weeks of the reporting period.
Wall Street was also proving resilient to jitters over a slew of anthrax cases and scares around the world after the market was knocked for a loop on Tuesday when new cases of the potentially deadly disease were discovered.
``We're quite well aware of the anthrax issues, and there wasn't anything added to what I consider that negative overhang relative to retaliation,'' Riley added.
Standard & Poor's 500 stock index futures for December were up 5.40 points at 1,093.60, while Nasdaq 100 stock futures for the same month were up 7 points at 1,402.
Later Wednesday, investors will be carefully scrutinizing the Federal Reserve's ``Beige Book'' report, an anecdotal look at the U.S. economy. The report is set for release at 2 p.m.
Despite few signs that the economy is recovering from its slump at this point, investors are beginning to bet that the massive amounts of monetary stimulus the government has injected and the fiscal stimulus that is likely on its way in the form a of $100 billion plan will ensure recovery, analysts said.
The earnings picture so far is far from pretty, but many companies have been able to at least meet analysts' estimates, lifting hopes the deterioration in profits is nearing an end.
After Tuesday's close, Compaq reported a third-quarter operating loss in line with Wall Street estimates due to weak technology spending, aggressive pricing, and shipping problems related to the Sept. 11 attacks on the World Trade Center and Pentagon.
Eastman Kodak, the No. 1 maker of photographic film, said its third-quarter profits fell sharply, hurt by slumping consumer demand for its film and camera products, but it also matched analysts' estimates.
DuPont Co.(DD.N), the No. 1 U.S. chemical company, on Wednesday posted a sharp drop in third-quarter earnings, citing tough economic conditions and weaker demand for its chemicals and plastics.
Stocks fell on Tuesday, as more reports of anthrax buffeted
a market already dealing with disappointing results and dim forecasts from a range of companies.
The death toll from anthrax sent through the mail rose to three after two U.S. postal employees were confirmed to have died from the bacteria, and traces of the germ warfare agent turned up at a military screening center for White House mail.
Worries about U.S.-led strikes in Afghanistan, home to the group suspected behind the Sept. 11 attacks, also hung over the market as U.S. planes continued bombing. Washington admitted mistakenly hitting civilian areas in earlier raids.
The Dow Jones industrial average (.DJI) fell 36.95 points, or 0.39 percent, to end at 9,340.08, while the broader Standard & Poor's 500 Index (.SPX) dropped 5.12 points, or 0.47 percent, to 1,084.78. The tech-laced Nasdaq Composite Index (.IXIC) fell for the first session in four, declining 3.65 points, or 0.21 percent, to 1,704.43.
In overseas markets, telecoms, technology and insurance stocks fueled more gains for European markets on Wednesday, as cash-heavy investors sidestepped the latest corporate warnings and banked on a 2002 recovery instead. The pan-European Eurotop 300 (.FTEU3) rose 0.4 percent.
Tokyo stocks closed mixed on Wednesday with several high-tech issues such as Sony Corp (news/quote) (6758.T) falling prey to profit-grabbing, but banks, which had been left behind in the recent rally, were higher.
The benchmark Nikkei share average (.N225) finished down 59.41 points or 0.55 percent at 10,802.15, its first retreat in four sessions.
