Although there will be a lack of market-moving economic data, the third week of October will be packed with a number of large-cap earnings, and the majority of these corporate earnings are estimated to have year-over-year bottom-line growth.
Given the upward pressure on Treasury yields since the start of September, common sense dictates that investors are becoming more risk tolerant. Moreover, after the House of Representatives approved the 2018 budget, which opened up the door to massive tax cuts by the end of the year, it should keep bulls motivated throughout the week as well.
In essence, markets seem to be set for another week of breaking records, which should keep pundits busy about guessing the ultimate peak.
Check out last week’s Market Glance here in which earnings from the banking sector were in the limelight.