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Third Quarter Earnings

 
At some point the rally of hope, stimulus and gains on thinning volume must give way to something firmer. That something firmer could easily be third quarter earnings and accompanying guidance, which starts with Alcoa on Wednesday. From Zacks:

 
The median S&P 500 company is forecast to report a 15% drop in profits and a 6.9% drop in revenues. (On an average company basis, EPS should drop 36.2% and revenues should fall 9.4%. The average numbers look worse due to the influence of outliers, or companies projected to report very large year-over-year drops.)  The decline in EPS based upon operating income is expected to fall 24% according to a survey by Bloomberg.