The market is consolidating in a narrow range near its crucial support level, which still warrants some caution as a breakdown could take the index towards even lower levels from here.
Fourth-quarter results, even with the dollar's drag, are mostly beating Wall Street's expectations and helping provide a buffer to some of the uncertainties facing investors, including the new US president's policies. The S&P 500 ended with a slight gain for the week.
Investors were expecting to see evidence of a second-half profit rebound, but US companies are already sounding more cautious, thanks to worries about global economic weakness and renewed dollar strength since the June 23 vote.
Investors say they are bracing for another leg down in the S&P 500 stock index despite its positive showing last week by increasing cash and other defensive positions in their portfolios.
Wall Street expects a 3.4 percent decline in earnings for the S&P 500 for the quarter. Estimates have already fallen for 9 out of 10 of the benchmark index's sectors so far this year, according to Thomson Reuters data.
The steep selloff that pushed down the benchmark Standard & Poor's 500 index five percent over three days may say more about the outlook for emerging markets than US companies in the fourth quarter, fund managers and analysts say.
Anxiety about Greece and uncertainty about the timing of higher US interest rates may keep Wall Street on edge early next week, but one ray of hope for investors could be an unusually long streak of ambivalence on Main Street.
On Monday, the National Association of Realtors is expected to report strong growth in existing home sales for May. On Wednesday, Lennar, the No. 2 US homebuilder is expected to report that it had a strong second quarter.
Fed Chair Janet Yellen on Friday said she expected the US central bank to raise rates in 2015, though the process was expected to be gradual, with the timing of the first hike dependent on the strength of economic data.
After starting 2015 with its sharpest monthly drop in a year and a spike in volatility, the benchmark S&P 500 .SPX hit an intraday record on Friday while the Dow Jones Industrial Average .DJI reached its highest point so far this year.
Investors are beginning to wonder if this Energizer Bunny of a rally can just keep going without taking a break or a fall.
A bounce could be the cards for US stocks next week as bulls defend a key technical level and managers buy the quarter's winners to prop up their books.
A lot is set to happen around the globe this week. As the overseas markets are sailing volatile waters, here’s a lowdown of all that is scheduled to matter most.