Dow approaches 13,000 mark

The Dow Jones industrial average is now perched below the 13,000 mark, lifted last week by surprisingly strong earnings reports. If this week’s reports follow that trend, investors may send the index hurtling past that milestone.

So far, 16 of the 30 Dow component companies have released earnings from the first three months of the year, and 10 have beaten expectations.

This week, six more Dow components report results, including Exxon Mobil Corp., which in 2006 posted the largest annual profit by a U.S. company, and Microsoft Corp., which investors will be eyeing for clues about the potential of the technology sector.

But although the Dow is back in record territory and the Standard & Poor’s 500 and Nasdaq composite indexes are at their highest levels in more than six years, many market watchers are skeptical about Wall Street’s ability to extend last week’s streak with the same vigor.

Volatility remains higher than it was before the stock plunge on Feb. 27 that sent the Dow tumbling 416 points, and although the market has recovered its losses, many of the same concerns that took the market down two months ago remain: high inflation, a weakening dollar and a slow housing market.

Investors will have a good deal of housing data to examine this week. Recently, reports have shown that the housing market is still tepid but more resilient than many investors expected, suggesting that the troubles with sub-prime mortgages aren’t affecting the broader lending industry and that homeowners won’t feel the need to rein in spending.

On Tuesday, the National Assn. of Realtors reports sales of existing homes in March. The market expects that 6.5 million existing homes were sold, down slightly from 6.69 million in February, according to the median forecast of economists surveyed by Thomson Financial. Also Tuesday, Standard & Poor’s releases its February index of home prices.

On Wednesday, the Commerce Department reports on new-home sales in March. Economists estimate that 851,000 new homes were sold in March, compared with 848,000 a month earlier.

Last week, benign inflation data also helped stocks surge. The Dow rose 2.8%, the S&P; 500 rose 2.2% and the Nasdaq rose 1.4%.

AT&T; Inc. releases its first-quarter earnings Tuesday. Analysts surveyed by Thomson expect the company to report profit of 61 cents a share. The phone company closed at $39.87 on Friday, at the upper end of its 52-week range of $24.72 to $39.90.

Boeing Co.’s quarterly earnings come out Wednesday, and analysts expect the aerospace manufacturer to report profit of $1.02 a share. Boeing closed at $93.29 on Friday, at the high end of its 52-week range of $72.13 to $94.75.

Apple Inc.’s results also come out Wednesday and are expected to show quarterly profit of 64 cents a share. Apple closed at $90.97 on Friday, at the upper end of its 52-week range of $50.16 to $97.80.

Thursday will bring Microsoft’s and Exxon Mobil’s earnings. Microsoft’s profit is expected to be 46 cents a share. The software maker closed at $29.02 on Friday, in the upper half of its 52-week range of $21.45 to $31.48.

Exxon Mobil is expected to post a profit of $1.51 a share. The oil company closed at $79.76 on Friday and set a fresh 52-week high of $79.80. Its previous high was $79.

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At a glance

Today

Social Security trustees to issue report on the trust fund.

Treasury bill auction.

Quarterly earnings reports due from Amgen, Delta Air Lines, Hasbro, Kimberly-Clark, Novartis and Texas Instruments.

Tuesday

National Assn. of Realtors reports on existing-home sales for March.

Conference Board reports its consumer confidence index.

Quarterly earnings reports due from McClatchy, Northrop Grumman, Occidental Petroleum, Sun Microsystems, Amazon.com, AT&T;, BP, Burlington Northern Santa Fe, DuPont, JetBlue Airways and United States Steel.

Wednesday

Commerce Department reports on durable goods orders and new-home sales, both for March.

Federal Reserve releases results of its survey of regional economic conditions.

Quarterly earnings reports due from Apple, Qualcomm, Anheuser-Busch, Boeing, Colgate-Palmolive, ConocoPhillips, General Dynamics, GlaxoSmithKline, PepsiCo, Pulte Homes, Raytheon, Reynolds American, Sprint Nextel and UAL.

Thursday

Labor Department reports on weekly jobless benefit claims.

Freddie Mac reports on mortgage rates.

Quarterly earnings reports due from Countrywide Financial, Safeway, 3M, Aetna, Alaska Air Group, Belo, Bristol-Myers Squibb, Comcast, Dow Chemical, Exxon Mobil, Ford Motor, Halliburton, Harrah’s Entertainment, Microsoft and US Airways Group.

Friday

Commerce Department reports on gross domestic product for the first quarter of 2007.

Labor Department reports on employment cost index for the first quarter of 2007.

Earnings reports due from Chevron, Burger King Holdings, Goodyear Tire & Rubber and Waste Management.