The "surgical precision" of the airstrikes in Syria helped greatly relieve market concerns, for the moment, that a wider conflict was brewing.
The bigger debate the market is having is this whole "peak earnings" story, the idea that this year corporate earnings will be up 18 percent to 20 percent. The punchline is that the estimate for 2019 earnings is a gain of 10 percent. Earnings are still growing over both periods, but the rate of growth will be lower next year.
Will that matter? My sense is that it will, but it's too early to have this fight. This seems like a debate for the third quarter, not now, and that the market still has room to go up.
I think stocks still may have room to go up. The S&P is trading at just about 17.1 times 2018 earnings, in line with historic norms but well below the 18.5 multiple earlier this year. And there's a strong likelihood that buybacks and the impact from tax cuts are not fully priced into the market.
The "peak earnings" debate is not the only challenge stocks are facing.