After the wildest market week in months, investors are looking to U.S. corporate earnings season to soothe frayed nerves in the coming week.
Stocks sold off sharply in the past week, and even with a bounce back on Friday, the S&P 500 was down 4.1 percent. A sudden jump in interest rates and worries about the impact of tariffs and trade disputes on earnings drove stocks lower, with some of the worst losses in growth stocks.
The S&P ended the week on a high note, up 1.4 percent on Friday but closing at 2,767, one point above its 200-day moving average. The moving average is a momentum measure, and it is widely watched, even beyond stock market chartists.
"The S&P 500 closed right on the 200-day. It's just like a magnet. Everyone looks at these levels as super important, and that's where it ended up," said Art Hogan, chief market strategist at B. Riley FBR. "We enter next week on tenterhooks. There's a whole lot of nervousness. ... Sitting on support, rather than sitting on resistance, is always a better way to enter the earnings season."
Companies reporting in the week ahead include Bank of America on Monday; Goldman Sachs, Morgan Stanley, Johnson and Johnson and IBM on Tuesday; Abbott Labs on Wednesday; American Express on Thursday and Procter and Gamble on Friday.