Investors optimistic about third-quarter earnings, interest rates

Investors might feel a little more optimistic about the market this week. Third-quarter earnings are expected to be strong, and the Federal Reserve appears to have stopped raising interest rates for now. Investors might start picking up some stocks in the beaten-down technology sector, as the NASDAQ has been down nearly 10 percent in the past month. \nTraders should have more confidence this week, as many bearish factors appear to be improving.\nLast week the markets traded in a turbulent fashion, but didn't lose much ground. A Sept. 21 Intel earnings warning had many predicting an ugly end to the week. At first, it appeared the markets were in trouble with the NASDAQ down 214 points and the Dow Jones Industrial Average down more than 100 points. Nonetheless, traders staged an impressive rally pushing the Dow Jones Industrial Average to close up 81.85 at 10,847.37 Friday. The NASDAQ also bounced off its worst levels to close down 25.16 ending the week at 3803.71.\nUnited States Joins Europe\nInvestors got good news Sept. 22 when the United States joined central banks from Europe and Japan to help rescue the ailing euro. Confidence in the currency has been fading because the euro is down more than 25 percent from its opening level. \n"The main issue for central banks was not to strong-arm the currency higher, but to address negative sentiment and stop the decline from continuing," Lisa Finstrom, senior currency analyst at Salomon Smith Barney told MSNBC. The move to bail out the currency comes days before Denmark expects to vote to adopt the euro. \nPetroleum price falls\nAs the market closed Friday, oil prices fell 1.32 to close at 32.68. In what many are calling a political move, President Bill Clinton authorized the release of 30 million barrels of oil from the country's strategic petroleum reserves. The release attempts to increase supply and decrease prices. Still, Organization of the Petroleum Exporting Countries president Ali Rodriguez predicts prices will fall, but only temporarily. \nNotable Stocks\nSept. 21, Intel issued an earnings warning, announcing it would be short of expectations. The company blamed the problem on weak demand in Europe. Hewlett-Packard announced it would purchase $1 billion of its own stock. Earlier last week, the company announced it was attempting to purchase the consulting division of PricewaterhouseCoopers. \nStock news\nIn other market news, AOL and Time Warner have submitted concessions to European antitrust regulators, according to The Washington Post. The companies hope to win approval for their multi-billion dollar merger. Many competitors worry the combined company will be able to discriminate online content.