NEW YORK (MarketWatch) -- The U.S. stock market is likely to continue pulling risk on and off the table in the days ahead, with another heavy round of earnings reports in store, along will a full slate of data on the economy, employment in particular.
"We're getting a sharper rebound in earnings than in the economy," said Jim Dunigan, managing executive of investments at PNC Wealth Management.Of the 336 S&P 500 companies that have reported second-quarter earnings, 75% exceeded expectations, 10% reported earnings in line with analysts' estimates and 15% missed, according to John Butters at Thomson Reuters.
And, while government-induced spending helped companies generate stellar profits, those bulging bottom lines are doing little to create jobs, notes Jack Ablin, chief investment officer at Harris Bank.
The nation's persistently high unemployment rate, the biggest source of worry for those looking for signs of life in the economic recovery, will have Wall Street fixated on Friday's July jobs report, as well as the government's weekly count of those filing for jobless benefits, with that data released the day before.
