Market's next big hurdle: Earnings season | Can the Dow's bounce be trusted? | Cramer on what the charts suggest
EDITOR'S NOTE
Stocks proved hard to keep down this week, and the start of earnings season in the week ahead could further bolster the comeback if profits roll in as expected or better.
The major averages notched a winning week after overcoming a debt ceiling debacle in Washington. Lawmakers passed a short-term deal that will extend the debt ceiling until December, kicking that overhang for the market down the road. This week's price action also overcame surging oil prices and a disappointing jobs report, with investors buying bank and energy shares.
A market pullback that began in September brought the S&P 500 down more than 5% from its record at one point Monday, before stocks mounted a comeback. For the week, the S&P 500 added back 0.8% and sits just 3.4% away from its record.
The third-quarter earnings season — which kicks off next week with big bank earnings — is expected to be another strong series of reports, despite some worries about supply chain issues and higher costs. Third-quarter earnings are expected to have risen 27.6% year over year, according to FactSet. That would be the third-highest growth rate since 2010.
THE WEEK AHEAD
MICHAEL SANTOLI'S MARKET COLUMN
ACTIVIST SPOTLIGHT
YOUR WEEKEND BRIEFING
|
Post a Comment