With the problem of valuations and wobbly earnings, Calvasina said corporate buybacks are one of the best catalysts remaining for the stock market.
General Electric Friday announced a $50 billion buyback, on par with the largest-ever buyback of the same size announced by Apple two years ago. According to Citigroup strategists, the S&P 500 has bought back $4 trillion of its stock in the past 10 years.
"The cash deployment theme is the thing we count as the big positive. We have been a little concerned that you might be in the final stages. You might be in the late innings…. This doesn't mean it has to stop. We've seen cash levels go down. Debt levels have gone up. You're starting to see a little more interest in M&A," Calvasina said.
The benefits have been twofold: Buybacks give companies smaller float and help on the earnings side, with a small share count boosting earnings per share.
"It has been a strong underpinning and you can't underestimate the positive of that," she said.
What to Watch
Earnings: Commerce Bancshares, Pep Boys
Earnings: JP Morgan Chase, Wells Fargo, Johnson & Johnson, Intel, CSX, Linear Tech, JB Hunt Transportation, Fastenal
7:30 a.m.: NFIB small business survey
8:30 a.m.: Retail sales
8:30 a.m.: PPI
10 a.m.: Business inventories
8 p.m.: Minneapolis Fed President Narayana Kocherlakota
Earnings: Bank of America, US Bancorp, Burberry, Charles Schwab, PNC Financial, Netflix, SanDisk, Universal Forest Products, Progressive, ASML Holdings
8:30 a.m.: Empire State survey
9 a.m.: St. Louis Fed President James Bullard
9:15 a.m.: Industrial production
10 a.m.: NAHB survey
10:40 a.m.: Fed Vice Chairman Stanley Fischer, moderating IMF panel
2 p.m.: Beige Book
4 p.m.: TIC data
Earnings: BlackRock, Citigroup, Goldman Sachs, Blackstone, American Express, Schlumberger, Celanese, Crown Holdings, UnitedHealth, Taiwan Semiconductor, Philip Morris, First Republic Bank, KeyCorp, Mattel, Sherwin-Williams, Sonoco Products, PPG Industries, WW Grainger
8:30 a.m.: Initial claims
8:30 a.m.: Housing starts
10 a.m.: Philadelphia Fed survey
1 p.m.: Atlanta Fed President Dennis Lockhart
1:10 p.m.: Cleveland Fed President Loretta Mester
1:30 p.m.: Boston Fed President Eric Rosengren
3 p.m.: Fed Vice Chairman Fischer on inflation at IMF spring meeting
Earnings: GE, Honeywell, Synchrony Financial, Comerica
8:30 a.m.: CPI
10 a.m.: Consumer sentiment