Sales in 2004 are expected to be $28 billion to $29 billion. In 2005, revenue is seen in the range of $30 billion to $32 billion.

Nevertheless, shares of Northrop Grumman fell 1.48, or 1.69% to finish at 86.01 in regular trading on the NYSE.

The Week Ahead

The week ahead is set to offer more updates of earnings forecasts for the current quarter. Markets could be impacted negatively in case that major companies issue disappointing news. Such a scenario is quite possible as giants Motorola Inc. (MOT: chart), Nokia Oyj. (NOK: chart) and Texas Instruments Inc. (TXN: chart) warned of lackluster results last week.

Market watchers will focus on retailers after May retail sales advanced 0.1% versus a decline of 0.3% in April. Circuit City Stores Inc. (CC: chart), the No. 2 U.S. consumer electronics chain, is expected to deliver first-quarter results Tuesday. Analysts look for an average quarterly loss of 24 cents a share.

The same day, before market open, Pier 1 Imports Inc. (PIR: chart) is on the deck to report quarterly results. The home furnishings chain is pegged to post first-quarter earnings of 21 cents a share.

On Wednesday, before the bell, Best Buy Co. Inc. (BBY: chart) should post quarterly financials. Circuit City's larger rival is forecast to earn 20 cents a share for its 2003 first quarter.

After market close Wednesday, stores operator Bed Bath & Beyond Inc. (BBBY: chart) is expected to report 2003 first-quarter results of 18 cents a share.

Aside from retailers, earnings of major investment banks should also grab attention. Wednesday will see Morgan Stanley (MWD: chart) report results for its 2003 second quarter, before market open. Average estimates are for a quarterly profit of 68 cents a share.

Again Wednesday, before market open, Bear Stearns Co. Inc. (BSC: chart) is slated to release a profit of $1.72 a share for its second quarter of fiscal 2003.

And on Thursday, before market open, Lehman Brothers Holdings Inc. (LEH: chart) is expected to post a profit of $1.17 a share for its 2003 second quarter.