As massive companies like Microsoft, McDonald's, Visa and Caterpillar unveil their second-quarter earnings results this week, investors will be looking for further signs that the economy sped up in the second quarter, and is poised to accelerate into the end of the year.
"The earnings picture looks pretty good," said Brian Stutland of the Stutland Volatility Group. "As long as earning keep coming out good, and it's a controlled rally, I think you can remain positive on the market."
For Jonathan Golub, chief U.S. market strategist at RBC Capital Markets, second quarter earnings should confirm that the economy is growing reasonably well.
"While some have suggested that 2Q will see a bounce-back from weather-related issues earlier in the year, our work indicates that sustainable trends are driving improvement," Golub wrote in a recent note. "Furthermore, in the coming quarters, EPS (earnings per share) is projected to strengthen from current levels on an improving economy and margin upside."