Earnings reports will influence markets, political debate

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/POLITICS/10/12/john.king.monday.memo/art.traders.gi.jpg caption="Earnings and consumer confidence reports will affect markets and indicate whether the economy is rebounding."]

John King
CNN Chief National Correspondent
Anchor, State of the Union

For a sense of the economy, it is a good week to track the earnings reports from Wall Street. And for the two biggest issues confronting the Obama White House - Afghanistan and health care - keep your eyes on Washington.

It was the collapse of the financial sector that played the biggest role in the economic turmoil of 2008, and several earnings reports in that sector this week are sure to influence both financial markets and the political debates over bailouts and bonuses. JP Morgan Chase, Citigroup and Bank of America are scheduled to report their earnings.

Consumer spending is another economic engine, and if there is early evidence of a rebound, the earnings from Johnson & Johnson and General Electric might provide clues, just as the numbers from Google and Intel will give a sense of the tech sector.

Washington celebrates Columbus Day on Monday, so the political week begins in earnest on Tuesday. The Senate Finance Committee likely will dominate the day as it votes on a 10-year, $829 billion health care plan.