Earnings will guide stocks, as investors view the Fed as sidelined

Goldman Sachs, Bank of America and Johnson and Johnson are among the companies reporting earnings early Tuesday.

Netflix may also cast a glow on the market, after its stock jumped more than 10 percent in extended trading Monday after the company posted a surprisingly large increase in subscribers.

Besides earnings, there is also a batch of economic news, including import prices and business leaders survey, at 9:30 a.m. ET. The NAHB home builders survey is at 10 a.m., and Treasury capital flow data will be released at 4 p.m. ET.

Earnings are the key focus for investors, however. Novartis, UnitedHealth, Lockheed Martin, Harley-Davison, TD Ameritrade and Charles Schwab are also slated to report ahead of the opening bell. IBM, CSX, United Continental and Pinnacle Financial report after the closing bell.

"The market will be focusing on true economic metrics, meaning how are we doing, not how are we being supported. Rather than being enthused by lower interest rates, by the possibility of tax cuts, now we're being left to our own economic devices," said Sam Stovall, chief investment strategist at CFRA. "Nobody's expecting the Fed to raise rates next Wednesday nor in September, and, I think based on recent commentary by the Federal Reserve members, now December is being called into question."

Stocks were mixed Monday, but the Nasdaq gained nearly 2 points to 6,314, giving it a seven-day winning streak. The Dow was off 7 at 21,629 and the S&P 500 was down less than a point at 2459.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

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