As the earnings season will not kick into high gear until the first week of October, the market’s focus in the week ahead will be on economic data and the first of three face-to-face presidential debates, which is scheduled for Thursday. According to analysts, the upcoming data will show if the economy is back on track. The data reports start with August new-home sales, followed by the September reading of consumer confidence by the Conference Board, due on Tuesday. On Wednesday, analysts will be expecting the final numbers on second-quarter U.S. gross domestic product. Analysts forecast an annualized growth rate of 3%, on average. The U.S. Commerce Department’s August personal income data announcement is scheduled for Thursday. Despite the busy data calendar, the market’s attention will also be focused on the crude oil market, as rising oil prices continue to affect corporate earnings forecasts. As for the earnings, reports in this week are expected from chipmaker Micron Technology Inc., due to announce on Wednesday, soft-drink maker PepsiCo. and retailer Family Dollar, scheduled for Thursday.

PalmSource, Inc. (PSRC: chart) announced after market close Thursday a smaller quarterly loss, helped by higher revenue and lower expenses. The Sunnyvale, California-based software maker reported a net loss of $165,000, or a penny a share, for its fiscal 2005 first quarter, in contrast to a prior-year net loss of $3.8 million, or 38 cents a share. Excluding unusual items, the company posted a profit of $800,000, or 5 cents a share, for the quarter ended August 27, reversing from a loss before items of $1.5 million, or 15 cents a share, for the 2004 corresponding quarter. Analysts had expected a loss of 2 cents a share, on average. Quarterly revenue climbed to $18.2 million from $17.1 million, beating the mean analysts’ estimate of $17.9 million. PalmSource, which supplies the operating system software for the handheld devices of palmOne Inc. and Sony Corp., said its second-quarter revenue will miss analysts’ estimates, due to Sony's decision to withdraw from the U.S. handheld computer market. PalmSource said it expects second-quarter results, excluding items, to be between break-even and a profit of 13 cents a share, on revenue of about $18 million. Analysts forecast a profit 5 cents a share, on revenue of $19 million.

A.G. Edwards, Inc. (AGE: chart) reported Thursday an 8% increase in its quarterly income, aided by lower expenses. The retail brokerage turned in net earnings of $40.6 million, or 52 cents per share, for the second quarter of fiscal 2005, up from net earnings of $37.5 million, or 47 cents per share, last year. Analysts were looking for a profit of 56 cents per share, on average. Net revenues dipped 4% to $614.3 million, for the quarter ended August 31, compared with prior-year revenues of $639 million. Analysts had forecast revenues of $655.8 million. Revenue from principal transactions declined 14% to $71 million, while investment banking revenue plunged 39% to $57.9 million. St. Louis, Missouri-based A.G. Edwards said commission revenues for the second quarter dropped 12% to $237.1 million, citing decreased investor activity in individual equities. Asset-management and service-fee revenues for the second quarter increased 27% $214.2 million, reflecting ‘greater client interest in fee-based programs and services’.

Rite Aid Corporation (RAD: chart) said Thursday that it swung to a quarterly profit from a year-earlier loss, aided by a decrease in inventory expenses. The Camp Hill, Pennsylvania-based drugstore chain announced a profit of $9.8 million, or nil per share, for its fiscal second quarter, rebounding from a loss of $10.6 million, or 4 cents per share, in the year-ago equivalent. Analysts were looking for a loss of 1 cent a share. Sales for the quarter inched up 1.8% to $4.12 billion. Same-store sales were up 2% from last year.

Boosted by strong sales, The Finish Line, Inc. (FINL: chart) on Thursday turned in second-quarter net income of $20.8 million, or 85 cents per share, up from net income of $17.5 million, or 73 cents per share, for the same period of the prior year. The Indianapolis, Indiana-based athletic shoe retailer recorded net sales of $312.2 million in the quarter, compared with $270.8 million, a year earlier. The consensus analysts’ forecast was for a profit of 87 cents a share, on revenue of $312.1 million.

Electro Scientific Industries, Inc. (ESIO: chart) of Portland, Oregon, posted Thursday a profit for its fiscal first quarter, jumping back from a prior-year loss, driven by solid revenue growth. The maker of manufacturing and test equipment said that it swung to a profit of $10.6 million, or 36 cents per share, in the first quarter, from a loss of $9.4 million, or 34 cents per share, for the 2004 corresponding period. Quarterly revenues surged to $72.6 million from $20.9 million, bolstered by strong demand. The earnings, however, fell short of the average analysts’ estimate of 46 cents per share.

Manugistics Group, Inc. (MANU: chart) reported Thursday that its second-quarter net loss widened to $17.1 million, or 21 cents per share, from a net loss of $8 million, or 11 cents per share, last year. Excluding items, the Rockville, Maryland-based developer of supply chain management software lost $5.6 million, or 7 cents a share, in the quarter ended August 31, compared with a loss of $2.6 million, or 4 cents a share, in fiscal 2004. Manugistics blamed the results on weaker revenues, which declined 14% in the quarter to $51.3 million. Software revenue tumbled 38% to $11.1 million and services revenue was down 11% to $16.4 million.

Steelcase Inc. (SCS: chart) of Grand Rapids, Michigan, announced Thursday a drop in its quarterly earnings, on the sale of its Attwood business. The world's largest office furniture maker posted net income of $7.3 million, or 5 cents per share, for its second quarter, against net income of $18.1 million, or 12 cents per share, for the year-earlier quarter. Despite profit decline, the results surpassed analysts’ expectations for a profit of 1 cent a share, as revenue improved 6.4% in the quarter to $651 million. The company said it also benefited from lower operating costs.