Will Earnings Meet The Market’s Expectations?

Will Earnings Meet The Market’s Expectations?

The U.S. Capitol is seen January 7, 2021 in Washington, DC. (Photo by Alex Wong/Getty Images)



Getty Images

As a follower of U.S. politics and the stock market since Watergate, the developments in Washington, D.C. last week were something I never imagined I would see. Many I know were transfixed by the news for the entire afternoon last Wednesday. However, that did not stop the buying on Wall Street, which persisted all week.



SPX Hourly



www.Advisorsperspectives.com

Politics news aside, this was a surprise to many after how the week started. The S&P 500 had opened higher Monday after a nice overnight rally, but the sellers quickly took over. By 12:30 PM ET, the S&P 500 was down 2.5% for the day, but it rallied into the close to settle down just 1.48%. As the chart above from AdvisorPerspectives shows the S&P 500 spent the rest of the week climbing to with new highs.



Monday's decline was blamed on the continued climb in COVID-19 cases in the U.S. and the lockdown in the UK. The decline did trigger some momentary panic, but the major averages held their