The stock market could be put to the test by an earnings avalanche in the coming week.

Apple Microsoft Alphabet Facebook Amazon — the biggest of big cap tech — are among the 30% of the S&P 500 companies reporting. A third of Dow companies also release results. Caterpillar, Coca-Cola Merck, Boeing McDonald’s.

Lori Calvasina, RBC’s head of U.S equity strategy said that “Next week will be the real test.” We’re seeing a bit of improvement in each sector.

Nearly 84% have reported more than expected. According to Refinitiv I/B/E/S data, the earnings were expected to increase by 34.8% compared to last year.

“The tug-of-war in good versus bad earnings reports has landed in favor of the market with the S&P hitting an all-time high [Thursday]. Art Hogan, chief market strategist at National Securities said that this could cause problems next week. “We could finally start to see cracks in earnings season.”

The S&P 500 Dow Jones Industrial AverageThis week’s records were broken and the indexes saw solid gains. The S&P 500 gained 1.6% to 4,544, while the Dow ended the week up 1.1% at 35,677, the first record close since Aug. 16. Some strategists see the return of those highs in a positive sign. signal the market is on track for a year-end rally.

The Nasdaq CompositeThe week’s gain was 1.3%, although it fell 0.8% on Friday because tech stocks dropped.

Calvasina stated, “I believe we’re going learn a lot through this reporting season.” “So far, so good. It’s better than we expected, and there has been no drop in underlying demand. For the most part, companies are still able to manage. While investors are punishing those companies who aren’t doing well, they are not penalizing the market as a whole. “The market appears very rational at the moment.”

Take, for example: IntelAfter Friday’s stock market crash, shares plunged more than 11.6%, the company’s sales missed expectationsIt is. Intel warned that a shortage of components in the industry could impact its PC chip business. Other semiconductor stocks didn’t fall in the process. This is the VanEck SemiconductorETF fell by 0.8%

However SnapSent an industry-wide warning ThursdayWhen it quarterly revenues missed expectations. According to the company, Apple privacy regulations that were implemented earlier in this year had an adverse effect on its advertising business. According to the company, advertisers are being held back by supply chain disruptions as well as labor shortages.

Facebook’sAlphabet will keep an eye on earnings Monday for similar remarks, and reports from Alphabet will be closely viewed. TwitterTuesday Snap dropped 26.6% Friday and the stocks plunged. Facebook fell more than 5%

Facebook has had a more sour name. It was the. Instagram problemIt was. The kid problemIt is. After earnings, it has struggled to go up. It will be interesting for us to see how all of these problems are priced or whether it drops even further,” Scott Redler (T3Live.com chief strategy officer) said.

Redler claimed that Snap news came as a surprise because traders saw social media as being immune to supply-chain problems. Redler said that stocks were able to fluctuate within certain sectors despite social media being under severe pressure Friday.

“TeslaThis was the first time that I had ever been able to reach a new height. NetflixParticipation is at an all time high. Each group is different, and there are winners as well as losers. However overall participation has been better in quite some time. Five stocks aren’t driving the S&P to the all-time highs,” he said. There are a number of stocks from every sector. 

Traders now watch the Russell 2000Redler stated that small-cap breakouts would prove to be positive for overall markets. Redler trades in the the iShares Russell 2000ETF (IWM) closed at $227.41 on Friday. He said that if the IWM crosses the $230-$234 mark, this could signal more risk at the end.

Redler indicated that there could be a challenge in the markets over the course of the week. You just witnessed a dramatic 10-day increase. “You would assume there will be some digesting,” he stated. He said, “I’m not going to chase the markets here. The feeling is that we can rest here for the next few weeks. We could have some individual stock movements if the stomach could be digested and that would make it more healthy than the pain trade which is up.

A few key economic reports are available in the coming week, including durable goods Wednesday and third-quarter GDP Thursday. Personal consumption expenditures Friday will also be included. The Federal Reserve monitors the PCE Deflator (preferential inflation gauge) for Friday’s data.

Rates of interest are higher

Closely monitored 10-year Treasury yieldIn the last week, yields climbed higher and touched 1.70%. They then fell to 1.64% on Friday. Market professionals are monitoring to see whether the yield will exceed 1.74%. This is the March closing high and should be a concern for stock investors. On March 30, the 10-year yield reached its intraday peak of 1.776%.

John Briggs, NatWest Markets, stated that while it is possible to test the product in the coming weeks or so, “I think it would, I would say, over several days, but it would still be interesting at this stage if they sustainably break through.” The yields have been rising as investors expect the Federal Reserve to raise interest rates next year, while the market predicts higher inflation.

“I have a feeling that people would rather buy here than to sell,” he stated. The price of bonds is inversely related to the yield. As investors prepare for the end, it will be busy in the markets.

Briggs mentions the front, or the 2-year note yield,It has moved more quickly than the long end. He stated that this reflects market expectations for two rate increases next year.

Week ahead calendar

Monday

Earnings Facebook, Restaurant Brands, Otis Worldwide, Kimberly-Clark, Owens-Illinois, HSBC, TrueBlue

Tuesday

Earnings Alphabet Microsoft, Visa, Advanced Micro DevicesTexas Instruments Twitter,Chubb 3M, General Electric Robinhood, Eli Lilly,UPS and Novartis JetBlue,Lockheed Martin, Raytheon and Archer Daniels Midland Sherwin-Williams,Invesco Hasbro,Teradyne Boston Properties and Fortune Brands, Hawaiian Holdings. NCR Boyd Gaming

9:00 a.m. S&P/Case-Shiller home prices

10:00 a.m. FHFA Home Prices

10:00 a.m. New home sales

10:00 am. Confidence of consumers

Wednesday

EarningsThis is: Coca-Cola, McDonald’s Boeing,General Motors Ford,Bristol-Myers Squibb Kraft Heinz, Norfolk SouthernGlaxoSmithKline, General DynamicAutomatic Data: s. Brink’s CME Group, International Paper Penske Auto Group, eBay, Cognizant, Extra Space Storage, KLA Corp, Aflac,Harley-Davidson Flex SuncoriRobot

8:30 a.m. Durable goods

8:15 a.m. Economic indicators

Thursday

EarningsThis is: Apple, Amazon, Caterpillar, Comcast,Merck Northrop Grumman, Altria, Intercontinental Exchange, Sirius XM, Yum Brands,American Tower Gilead Sciences, Starbucks, Molson Coors and T. Rowe Price. Anheuser-Busch InBev, Sanofi, STMicroelectronics, Volkswagen, Royal Dutch Shell, Stanley Black & Decker, AllianceBernstein, Check Point Software, Brunswick, Oshkosh

8:15 a.m. Jobless Claims

8.30 a.m. Q3 real GDP advance

10:00 AM Pending home sales

Friday

Earnings Chevron,AbbVie Colgate-Palmolive, Lazard, Booz Allen Hamilton, Weyerhaeuser,Church and Dwight CBOE Global Markets Newell Brands, W.W. Grainger, Cerner, AonCharter Communications Phillips 66,Daimler-Benz, Nomura and Eni.

8:30 AM 8:30 a.m.

8:30 a.m. Q3 employment cost index

Chicago PMI 9:45 am

10:00 a.m. Consumer sentiment