Street Awaits Oil Price, Euro Warnings

Wall Street this week is bracing for more companies warning that soaring oil prices and a strong U.S. dollar will cut into their bottom line. But it’s not just oil worrying Wall Street. Europe’s common currency last week hit an all-time low, which will hurt U.S. exports or revenues from U.S. companies doing business there. New economic data to be released this week include U.S. housing starts on Tuesday for the month of August, a gauge of the U.S. economy’s health. The data, however, are unlikely to move the market, because investors already have digested figures that show the economy is slowing and inflation remains in check. A few companies will release earnings this week, including Wall Street’s premier firms, Morgan Stanley Dean Witter & Co., Goldman Sachs Group Inc. and Lehman Bros. The firms are expected to show solid profit growth.

Economic reports coming this week:

* Wednesday, the Commerce Department will release statistics on the U.S. trade deficit in July. Analysts expect another record to be set.

* Thursday, the Federal Reserve Bank of Philadelphia will report on manufacturing and productivity in the mid-Atlantic region. Evidence is mounting that the Fed’s efforts to slow the economy and contain inflation are taking hold.