Earnings Guidance

The stock market will be looking for clues about the strength of the U.S. economy when several big name companies report earnings this week.

• Monday: Pep Boys (PBY)
• Tuesday: CSX (CSX), Fastenal (FAST), Intel (INTC), JB Hunt (JBHT), Johnson & Johnson (JNJ), JP Morgan Chase (JPM), Wells Fargo (WFC)
• Wednesday: Bank of America (BAC), Delta Air Lines (DAL), Netflix (NFLX), U.S. Bancorp (USB)
• Thursday: American Express (AXP), Goldman Sachs (GS), Schlumberger (SLB), UnitedHealth (UNH)
• Friday: General Electric (GE)

Are Cracks Starting To Appear?

If the market anticipates that earnings will usher in a new bear market, we would expect to see structural problems starting to form in the bullish foundation. This week's stock market video looks for cracks in trends, the VIX, and market breadth.

Investment Implications - The Weight Of The Evidence

Earnings will offer the latest read on the health of the U.S. economy. If guidance comes in below already low expectations, we may be forced into a more defensive posture. Given what we know as of Monday's close, an equity-heavy allocation remains prudent. If the S&P closes below 2,039 later this week, our concerns would increase.