Earnings season is about to kick off this week with three DJIA components and a slew of other influential sector-moving companies.  The key reports we are watching first are CSX Corp. (NYSE: CSX), Intel Corporation (NASDAQ: INTC), J.P. Morgan Chase & Co. (NYSE: JPM), and General Electric Co. (NYSE: GE).  During the week we will also be looking for sector impact moves after earnings come from Apollo Group Inc. (NASDAQ: APOL), Safeway Inc. (NYSE: SWY), Advanced Micro Device, Inc. (NYSE: AMD), Google Inc. (NASDAQ: GOOG), JB Hunt Transport Services Inc. (NASDAQ: JBHT), and Mattel Inc. (NYSE: MAT).

We have updated the data from Thomson Reuters and we have also added in more color and shown how the stocks have performed into earnings expectations.  There are a few key themes we want you to pay attention to.  First is that many moves have already priced in the news about the past, and it is guidance for Q4 and beyond where investors need their direction.  Another aspect to watch is the rise in commodity prices along with the decline of the dollar and global currency devaluation.  Cost of capital will be key, and the politicos will be watching hiring trends (or lack of hiring trends) for direction.

Rail-giant CSX Corp. (NYSE: CSX) is set to report earnings after the close of trading on Tuesday.  Thomson Reuters has estimates of $1.04 EPS and $2.66 billion in revenues; Next quarter estimates are $1.00 EPS and $2.62 billion in revenues.  At $58.63, the 52-week trading range is $41.81 to $62.00 and the average analyst price target objective is $66.29.  Its $22 billion market cap gives this one the #3 position by market caps of the North American rail shippers, or #4 if you take BNSF for Berkshire Hathaway inc. (NYSE: BRK-A).

On Tuesday after the close, we will get a report from DJIA component Intel Corporation (NASDAQ: INTC) and Thomson Reuters has estimates of $0.50 EPS and $10.99 billion in revenues; Next quarter estimates are $0.50 EPS and $11.33 billion in revenues.  Intel did already warn on guidance and the move into smartphones and many of the notebooks, tablet-PCs and iPad purchases over traditional PC’s is a part of the trend.  Intel is not as solidly positioned there.  At $19.75 its 52-week trading range is $17.60 to $24.37.  The results given in the warning were considered “good enough” for many even if the stock did hit 52-week lows during the quarter.

Banking giant and DJIA component J.P. Morgan Chase & Co. (NYSE: JPM) is set to report earnings on Wednesday morning and estimates from Thomson Reuters of $0.88 EPS and $24.48 billion in revenues; next quarter estimates are $0.92 EPS and $24.7 billion in revenues (same as Friday). We will of course be watching all bank and broker tickers like BAC, C, WFC, GS, MS and on and on… At $39.80, its 52-week trading range is $35.16 to $48.20 and analysts have an average price target of $52.68.

General Electric Co. (NYSE: GE) is the third of the DJIA components set to report this week and the conglomerate reports on Friday morning. At $17.01 its 52-week trading range is $13.75 to $19.70 and analysts have an average target price of $20.23.  Thomson Reuters has estimates for the conglomerate of $0.27 EPS and $37.67 billion in revenues and its next quarter estimates are $0.33 EPS and $40.68 billion in revenues.  It should be a given that the financial operations will be the most scrutinized of all but the recent move of deals will be focused on to see what more there is in the land of M&A in 2010.   Investors may trade the whole market on GE but will be most focused on MMM, UTX, BRK-A, and HON after the report.

Apollo Group Inc. (NASDAQ: APOL) is due on Wednesday afternoon and Thomson Reuters has estimates for the controversial for-profit education leader of $1.30 EPS and $1.26 billion in revenues while next quarter estimates are $1.65 EPS and $1.41 billion in revenues. Investors will probably be paying attention to legislation concerns and comments around that more than just raw guidance because the legislation could have far reaching and long-lasting effects.  At $50.20 its 52-week trading range is $38.39 to $76.86.  Where this one goes is anyone’s guess, but despite the stock being down by a third from a year ago its shares have rallied by 25% from August lows at the peak of regulatory concerns.

Thursday morning will bring Safeway Inc. (NYSE: SWY) and this is the first grocer to report in earnings season.  Thomson Reuters has estimates of $0.31 EPS and $9.44 billion in revenues; Next quarter estimates are $0.62 EPS and $12.8 billion in revenues.  At $21.03 its 52-week trading range is $18.73 to $27.04.  The company had lowered some expectations and JPMorgan has been cautious ahead of this earnings report.

After the closing bell on Thursday, we will get reports from Advanced Micro Device, Inc. (NYSE: AMD).  AMD is likely to move the same direction ahead of its earnings as Intel because Intel is the one reporting first. Thomson Reuters has estimates of $0.06 EPS and $1.61 billion in revenues; Next quarter estimates are $0.09 EPS and $1.67 billion in revenues. At $7.07 its 52-week trading range is $4.33 to $10.24.

Google Inc. (NASDAQ: GOOG) will lead the bias on the internet sector and advertising sector after it reports on Thursday after the close.  Thomson Reuters has estimates of $6.67 EPS and $5.25 billion in revenues.  Google does not give guidance but for reference its next quarter estimates are $7.48 EPS and $5.77 billion in revenues.  Keep in mind that revenue projections from Thomson Reuters are ex-Traffic acquisition costs and will be grossly different from the headline numbers reported by newswires. At $542.00, its 52-week trading range is $433.63 to $629.51 and analysts have an average price target objective of almost $617.00.

JB Hunt Transport Services Inc. (NASDAQ: JBHT) could fall under the influence or bias of CSX Corp. (NYSE: CSX) because of the relation to shipping in trucking and rail.  JB Hunt’s earnings are due Thursday and could bring significant sector moves for other truckers such as CNW, KNX, WERN, ODFL, HTLD, ABFS, and maybe even YRCW. Thomson Reuters has estimates of $0.44 EPS and $ 985.79 million in revenues; Next quarter estimates are $0.46 EPS and $1.00 billion in revenues. At $35.90, its 52-week trading range is $29.45 to $39.65 and analysts have an average price target objective of $42.63.

Mattel Inc. (NYSE: MAT) reports earnings Friday morning and of course investors will watch Hasbro and any related recall fears in the sector on this one.  Thomson Reuters has estimates of $0.76 EPS and $1.94 billion in revenues; Next quarter estimates are $0.85 EPS and $2.09 billion in revenues.  At $23.99, its 52-week trading range is $18.00 to $24.60 and analysts have an average price target objective of $27.79.

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JON C. OGG

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