Market in a Minute

So far two-thirds of stocks within the S&P 500 (INDEXSP:.INX) have reported earnings, painting a healthy picture for corporate profitability. Of the companies that have reported, 70% have beat earnings estimates and 65% have beat revenue expectations. On average, revenues increased 7% year-over-year, while earnings rose 11%. As a result of the broad market breadth, equal weight ETFs outperformed their market-cap weighted counterparts for a fourth week in a row.

The Trade:

Expect volatility to climb again this week as small caps take center stage in the earnings season. If the Nasdaq (INDEXNASDAQ:.IXIC) fails to break the 3,200 level on Monday, consider taking some profits in the sector, or at the very least, buying some puts on technology and small-cap positions.

Next Weeks’ Market Moving Events:

  • Monday: Loews Corporation (NYSE:L) reported earnings this morning and more than 100 small-cap companies will report earnings today.
  • Tuesday: Cliffs Natural Resources (NYSE:CLF), Coca-Cola Enterprises (NYSE:CCE), and Goodyear Tire (NASDAQ:GT) are set to report earnings.
  • Wednesday: Retail Sales and Import / Export Prices will give investors further insights into the state of our economy. Cisco Systems (NASDAQ:CSCO), Deere (NYSE:DE), and Duke Energy (NYSE:DUK) are among the widely held stocks reporting earnings today.
  • Thursday:GM (NYSE:GM), Molson Coors (NYSE:TAP), Apache (NYSE:APA), and PepsiCo (NYSE:PEP) report earnings
  • Friday: Consumer Sentiment, Industrial Production, and The Empire State Manufacturing report could make Fridays’ trading volatile. Campbell Soup (NYSE:CPB) and Kraft Foods (NASDAQ:KRFT) report earnin