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Markets Poised For Another Great Earnings Season

The markets eased back a little yesterday, but not by much. And the markets finished near their highs for the day.

A little bit of fatigue likely set in after the market was up for six days in a row.

And a report that China was considering 'slowing' or 'halting' their purchase of U.S. Treasuries provided just enough ammo of uncertainty to weigh of stocks. Personally, I don't see anything material coming from this. Of course, we'll have to see what type of action, if any, follows these words. But I don't see this roiling the market in any meaningful way.

But after such a great start to the year, the market is ripe for some degree of profit taking. And any news of uncertainty can have an impact.

That is one of the reasons why I'm still a bit concerned over potential volatility if Congress can't agree on a spending bill by Jan. 19th. Hopefully they do. But leading up to the vote, I would not be surprised to see volatility turn up a few notches until this is settled.

But again, any volatility should be transitory in nature. Especially with earnings season underway.

The market typically goes up during earnings season. And with the economy doing great, and corporate profits on the rise, this should be another great earnings season.

One industry in particular to keep an eye of this earnings season is tech. Industrial demand for tech-related products has never been stronger, consumers are spending more on tech in all areas of their lives, and tech companies are coming up with new innovations all the time. Some of the biggest gains last year were in tech. And that looks like it will be true again this year. If you're wondering if now is the right time to get into tech, the answer is yes. To learn why, please read our latest commentary...

Is Now The Right Time To Get Into Tech?

Best,

Kevin Matras

Executive Vice President, Zacks Investment Research

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