Stocks ended Thursday at 1675. That is the highest close in history… but just a notch short of the intraday high of 1687 set back two months ago.
After the recent strong rally, I sense that the broader market will go sideways to slightly higher for the next week or two. However, each individual stock will start to be weighed by the merits of their earnings announcements. And the bellwethers of each group will set the tone for their industry peers.
Even though, the market may go flat, there will be big winners and losers this earnings season. Those stocks that enjoyed big earnings surprises with their last quarterly report, then saw upward estimate revisions, are statistically biased towards repeating that feat in the next quarter.
Best,
Steve Reitmeister (aka Reity…pronounced “Righty”)
Executive Vice President
Zacks Investment Research
Pelias' views 