“Earnings have been solid but not spectacular,” said Kate Warne, investment strategist at Edward Jones. She also noted that the “companies that have missed have not been an indication of something broader.”
“For example, GE’s results are not a bellwether for the broader market,” Warne said.
Wall Street also stared down several key events slated for the rest of the week. First, the Federal Reserve is scheduled to announce its latest monetary policy decision on Wednesday.
However, most investors are not expecting any changes in policy. Market expectations for a Fed rate hike Wednesday are just 2 percent, according to the CME Group’s FedWatch tool. Rather, the Fed is expected to raise rates in December.
“The Fed is likely to continue on its gradual tightening path, but so far this tightening has had little effect on longer-term rates,” said Jason Pride, director of investment strategy at Glenmede, in a note.
“Demand for longer-term debt has been strong enough to offset the Fed’s efforts so far, as the aging global population has driven increased need for fixed income investments,” Pride said.
Speaking of the Fed, President Donald Trump is scheduled to announce his pick to be the next head of the central bank this week. Fed Governor Jerome Powell is likely to be named the next Fed chair.
Meanwhile, the Bureau of Labor Statistics is scheduled to release its latest monthly jobs report. Economists polled by Reuters expect the U.S. economy to have added 310,000 jobs last month in a sharp rebound from September’s 33,000 jobs loss.