Earnings Reports Offer Cautious Optimism for Stocks Despite Persistent Headwinds

Earnings optimism has kept market sentiment buoyant, with major companies like Tesla, Netflix, and Johnson & Johnson reporting this week.

S&P 500 earnings could edge up 0.4% in Q3, marking an inflection after four straight quarters of negative growth.

Tech stocks appear at risk given lofty valuations and economic uncertainty impacting earnings.

US indexes were mixed last week as inflation data sparked worries but optimism on earnings limited declines.

Analyst sees 13-14% upside for stocks as bull market enters its second year once macro headwinds like inflation recede.