After Friday's Rout, What Will This Week's Earnings Signal?

Traders on NYSE
Traders on NYSE

After the Dow's 261-point belly flop to end last week on what were, after all, better-than-expected bank earnings, investors may be forgiven for feeling rather queasy after checking out this week's earnings calendar.

More than 120 S&P 500 ($INX) companies and 12 of the 30 Dow ($INDU) components are scheduled to report second-quarter results in the days ahead, including IBM (IBM), Apple (AAPL), Coke (KO), Pepsi (PEP), American Express (AXP), Goldman Sachs (GS), Amazon (AMZN) and McDonald's (MCD). Oy.

But last week's pullback doesn't necessarily mean the rally is over, says Maier Tarlow, managing director at Raven Securities. "Earnings have been great so far," Tarlow says. "And more important, we haven't had bad pre-announcements. But we haven't gotten everything we wanted."

For more on Tarlow's take from the floor of the New York Stock Exchange (NYX), see the video below: