Wall Street is entering a crucial week that will allow investors to determine whether the U.S. stock markets are able to make it three and a further rise in weekly chain.
After its strongest rally recorded in two weeks and more than two years, the S & P 500 rises to a high of two months.This index, the most followed by fund managers, finished Friday above the 1220 points, a level it had not crossed since early August.
The fate of the New York stock market indices may depend on which will be published quarterly in quick succession this week, with the publications of third groups included in the Dow Jones.
In this list are Microsoft, American Express, Johnson & Johnson as well as Citigroup and Goldman Sachs will have to forget the disappointing trial results released last week by JPMorgan.
But investors will be especially the eyes of the figures for Chimene will be delivered by Apple after the death of its founder Steve Jobs and the launch of the fifth version of its iPhone, 4S.
"There are fundamental catalysts that could have a positive influence on the trend," said Richard Ross, Auerbach Grayson strategist at New York.
He said the S & P 500 "has the potential to go far beyond this level of resistance (1220 points) and quickly find the next level, between 1265 and 1275."
The spectacular rise in stock market indices from the lowest of 2011 took many investors by surprise and many traders and managers have tried to catch the train.
Last week, the Dow Jones took 4.9%, the S & P 500 6% and the Nasdaq 7.6%.
RESULTS IN SUPPORT
The estimated results and already published suggest an average growth of 12.4% of the profits of listed companies on the S & P 500, according to Thomson Reuters data.In July, growth was stood at 17%.
But groups such as Apple or IBM, whose shares have risen to historical highs Friday, should exceed the expectations and any positive surprise will fuel the rally.
"The prices will start to reflect more optimism," said Wasif Latif of USAA Investment Management.
"The groups with high growth, with expectations that surround them, must have a factor of 'wow'," adding that it was not impossible that the two groups still climbing.
Sign of easing tensions, the VIX index of volatility, sometimes referred to as a barometer of fear, fell over last week, closing Friday at a low not seen since Aug. 3.
While the proliferation of indicators and poor acceleration of the crisis of European sovereign debt had fueled the shift of indices, investors now seem to have chosen the side of optimism, encouraged by the activity responsible for the area euro.
These indicators, which appeared this summer also suggests a return to recession in the U.S. now seem less bad than some expected.