It was difficult for stocks to stay down during this week. The earnings reporting season starts next week. If profits are good, it could help boost the return.

After a Washington debt ceiling crisis, the major averages have a positive week ahead. Legislators finally approved a temporary deal to extend the debt ceiling through December. This will eliminate the risk of the overhang for the markets.

Add surging oil pricesAnd a disappointing jobs reportInvestors buying up energy and bank shares add to the other major worries caused by this week’s price action.

Ryan Detrick is chief market strategist for LPL Financial.

A market pullback that began in September brought the S&P 500 down more than 5% from its record at one point on Monday, before stocks mounted a comeback. For the week, the S&P 500 added back about 1% and sits just 3% away from its record.

Goldman Sachs, which predicted stocks would climb the wall to worry in early February, stuck with its bullish year end forecast. The stocks did.

David Kostin is Goldman’s U.S. Equity strategist said in a note to clients that his year-end S&P 500 price target for 2021 is still 4,700, which is nearly 7% above its current level.

Goldman said earnings growth, not valuation expansion, was the primary driver of the 17% S&P 500 equity return year-to-date and that should continue to be the case.

Analysts are now looking for catalysts to fuel their recovery after a difficult few months. Wall Street expectsThe major banks report on loan growth, reserve release and interest rates.

Jim Paulsen (Leuthold Group chief investor strategist) stated that earnings for the quarter’s third quarter will be stronger than expected. According to Leuthold Group chief investment strategist Jim Paulsen, hours worked for the third quarter rose by 5%. This suggests that the quarter’s real GDP could be as high as 7%.  Solid real GDP growth, which is a strong indicator of companies’ pricing power should lead to another strong season for corporate earnings.

Paulsen thinks that earnings season should reward cyclicals such as banks and small cap stocks more than technology shares.  

He added that he believes the stock markets are already showing signs of a leader shift from slow economic development favorites, including growth, tech and defensive, to more sensitive areas like small caps or cyclicals.

Last week, we saw the beginning of it when Bed Bath and Beyond crashed 25% following the acquisition by another company. said it saw a steep drop-off in traffic in August. Bed Bath & Beyond saw steeper inflation costs escalating over the summer months, especially toward the end of its second quarter in August, which corroded profits.

What investors know going into the third quarter —from company guidance — is that there could be haves and have nots this earnings season.

For the third quarter, 47 S&P 500 companies have issued negative earnings guidance and 56 companies have issued positive outlooks, according to FactSet.