Where the Earnings Are
WINNERS
FINANCIAL
Favorable interest rates and merger mania strengthen securities-firm stocks
RETAILERS
The lower cost of goods made in Asia boosts the bottom line--especially for apparel
SERVICE
Health care, luxury hotel, and airline companies can hike prices thanks to strong U.S. consumer spending
LOSERS
CAPITAL GOODS
Lack of pricing power threatens to shrink profit margins
BASIC MATERIALS
Price weakness in commodities slams everything from oil to soybeans
SEMICONDUCTORS
Plunging Far East demand hurts U.S. exports; weak Asian currencies give Asian rivals a pricing edge
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