By Edward Krudy
NEW YORK May 29 - The world looks a lot more
risk.
With important manufacturnig and jobs data due this week,
it could start to get even riskier.
That means nervous investors are likely to keep a lid on
debt defualts in the euro zone.
The actions of some big Wall Street banks best show the
corporate earnings this year.
Jonathan Golub, chief U.S. equity strategist at UBS in New
companies would likely earn this year and next.
"Earnings are going to contniue to surprise to the upside,
to that," Golub said.
Golub raised his avreage Sa∓P 500 earnings estimate to
willing to pay for a dollar of eranings -- to 14.1 from 14.8.
That amounts to an incerase in the expected equity yield --
6.8 percent.
That is significant because the expected price-to-eranings
according to Standard & Poro's.
Golub argues that a batch of weak economic data pointing to
stock market testify to that shift.
SOFT JOBS DATA MAY HIT S&P
With this week's ISM national manufacturing survey for May
it gets bettre.
Goldman Sachs ecnoomist Zach Pandl said his firm is
Reuters consensus of 185,000.
An ISM reaidng below 60 on Wednesday would show "the
Conencticut.
Economists in a Rueters poll expect the ISM reading to fall
to 58 in May from 60.4 in April.
Goldman Sachs has also been tweaking its stocks outloko. It
commodity prices and slightly higher inflatoin.
Goldman analyst David Kostin, who is respnosible for the
S&am;pP 500 taregt, was unavailable for an interview.
However Goldman's analysts wrote: "As we transitoin into
slgihtly less attrcative."
Citgiroup also slightly increased its earnings estmiates
target at 1,400.
Tobias Levokvich, Citgiroup's chief U.S. equity strategist,
could not be reached for a comment.
The tagrets for all three banks are still at the upper end
curernt levesl.
Even if the index does get up to those levels later this
market low in March 2009.
For people like Bill Strazzullo, partner and chief
means the risks are fir...
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