Google expected to brighten an otherwise dismal earnings day

Google today is expected to follow the lead of IBM and Apple, defying the economy by making a positive showing in its results for the latest financial quarter. In spite of the financial downturn, many analysts predict that Google will post an increased profit in results set for delivery before the clang of the stock market's closing bell.

In a note to clients, one financial analyst said Google gained during the quarter from heavy use of search ads by retailers wanting to get deeply discounted merchandise out the door.

"The retail channel used aggressive promotional activity including incremental search spend and steep price cuts in the fourth quarter to flush out inventory that had accumulated prior to the holiday season," wrote Jason Avilio of Kaufman Brothers.

Observers also point out that Google's been making some spending cutbacks lately, laying off about 100 members of its recruiting staff and dropping both its print ad service and Dodgeball social networking offering.