(Bloomberg) — Stocks closed at all-time highs in a cautious session that saw traders gearing up for Jerome Powell’s testimony to Congress and the start of the earnings season.
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With a mere 0.1% advance, the S&P 500 notched its 35th record this year. Some of the largest American banks will unofficially kick off the second-quarter reporting season Friday — and expectations are on the rise. Analysts’ upgrades to profit estimates have outnumbered downgrades. At the same time, forecasts for 12-month forward earnings stand at an all-time high.
John Stoltzfus at Oppenheimer Asset Management said a robust earnings outlook and a resilient economy could support higher valuations. He raised his year-end S&P 500 target to 5,900. At Goldman Sachs Group Inc., Scott Rubner says the bar for corporate results is high — with lofty expectations already baked in.
“As earnings season kicks off this week, investors should…
