Stock market bulls are banking on a shift in focus next week to earnings,
from the global economy, with major U.S. banks and technology companies
among the corporations slated to report third-quarter results.
"Next week, in my opinion, we really do switch to all about earnings," said
JJ Kinahan, chief strategist at TD Ameritrade.
"Typically when we transition into the heart of the earnings season, U.S.
markets tend to shift from the macro focus where we are concerned about the
European slowdown, Ebola, ISIS, Russia-Ukraine to company earnings, and we'
ll have plenty of that over the next two weeks," said Art Hogan, chief
market strategist at Wunderlich Securities.
The earnings season gets going in earnest on Tuesday with JPMorgan and Wells
Fargo, which should help set the tone for the rest of the season in part
because "those banks have so many other businesses, like housing and small-
business loans," Kinahan said.
"And then we'll get eBay and Google, so a little bit of the tech watch,"
Kinahan added.
"We all know the Fed is going away, and Germany is resetting our thought
processes on international economies. JPMorgan and Wells Fargo will take
some of that pressure off and focus on things more immediate," Kinahan said.
