For weeks, investors have been spooked by a parade of lower earnings announcements, particularly from technology companies. Many of those companies have cited a softening economy for the expected profit shortfall. But investors may get the catalyst they're looking for when the Federal Reserve's policy-setting arm convenes next week. Many on Wall Street are hoping the Fed will cut interest rates by half a percentage point. The Fed has slashed rates twice this year.
Lower rates help stimulate corporate and consumer spending.
Additionally, investors may get more clues on how the Fed may act when a new batch of economic data are released Friday. Meantime, many investors still are perched on the sidelines, armed with cash and anxious to take the plunge. Treasury Market U.S. Treasuries ended lower amid strength in equities. On the economic data front, the government released retail sales figures for February. It promised to deliver double-digit EPS growth in 2001 in any economic scenario.