With all the hoopla over the Dow topping 17,000 out of the way, the market’s next focus will be whether the fast-approaching earnings season can justify U.S. stocks climbing further into record territory.
Many factors point to second-quarter earnings poised to surprise substantially to the upside. There is a slight chance that profits for S&P 500 .SPX companies could return to double-digit growth for the first time in nearly three years.
After Thursday’s strong U.S. employment report, some economists have begun talking up prospects for a 4.0 percent annual growth rate in gross domestic product for the April-through-June period, a dramatic snap back from the first quarter’s contraction of 2.9 percent.
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