Intel, Goldman dent earnings gloom for now

NEW YORK (Reuters) - If results from Intel Corp (INTC.O) and Goldman Sachs (GS.N) are any indication of what's to come, earnings season may not be that bad after all.

It's still early in the earnings season, and estimates for the Standard & Poor's 500 .SPX as a whole remain dismal, but chip maker Intel and investment bank Goldman dabbed a bit of hope into the market after handily beating expectations.

Intel's revenue outlook topped analyst estimates, boosting U.S. and European stocks, and sending the PHLX semiconductor index .SOXX up 4.4 percent in late trading Wednesday. The world's largest chipmaker is seen as an economic bellwether and its results helped push indexes up 3.0 percent.

Analysts were less inclined to see Goldman as a barometer of the financial sector, however, but were still heartened by the results.

"This is probably one of the most important weeks in terms of what we're hoping to learn," about earnings and the market, said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

"If Intel is the model for the rest of the week, we're going to have a very good week," Ablin said.

Goldman has often outperformed its peers in earnings periods, but banking analyst Richard Bove said JPMorgan Chase & Co's (JPM.N) second-quarter results could also beat expectations, based on Goldman's strong results.

JPMorgan is scheduled to report on Thursday, along with International Business Machines (IBM.N) and Google Inc (GOOG.O). Bank of America (BAC.N) and Citigroup (C.N) are expected on Friday, along with General Electric (GE.N).

"The earnings season so far has been the typical 'beat expectations,' and I think it's just been enough with the market oversold to push things higher," said Brian Rauscher, director of portfolio strategy with Brown Brothers Harriman in New York.

The early earnings reports have buoyed sentiment, but going forward, investors will want to see more upbeat outlooks from companies.

And investors would be remiss in interpreting Goldman's optimism as indicative of the rest of the financial sector, particularly as the company's revenue came, in part, because of an increase in funds it was putting at risk through trading.

"It would be a mistake to apply Goldman earnings to the rest of the investment banking industry... They are in a unique position to scoop up market share as the 800-pound gorilla," said Bill Fitzpatrick of Optique Capital in Milwaukee, Wisconsin.

Second-quarter earnings for S&P 500 companies are projected to decline 36 percent from a year ago, according to data compiled by Thomson Reuters.

(Additional reporting by Patrick Rucker)