EDITOR'S NOTE
The S&P 500 and Nasdaq both notched new highs on Friday as investors anticipated a Fed rate cut and cheered a better-than-expected earnings season.
Earnings growth is slightly positive this quarter, but that could improve with nearly a third of the S&P 500 reporting next week, CNBC’s Patti Domm writes in her look ahead. So far, 75% of companies have beaten estimates with 60% topping revenue expectations. Apple, Exxon Mobil, Procter & Gamble, Merck, General Motors and Verizon are among the corporate giants on deck for next week. 
While earnings are key, the Fed will likely have the most market impact. The central bank is expected to cut interest rates for the first time in more than a decade Wednesday. The move, which is seen as preventative by economists, comes as concerns rise about the effect of the trade wars and a slowing global economy, Domm writes.
In the past several weeks, though, economic data has begun to show signs of improvement from a soft patch in the winter and spring. Consumers, who make up 70% of the economy, showed strength in the second quarter, with consumption up 4.3% for its best reading since late 2017.
Investors will also be watching for headlines on trade in the coming week, as the U.S. delegation returns to China for the first round of face-to-face talks since May.
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