Markets mixed as investors look to earnings for further gains

Markets were mixed on Monday.

The S&P 500 edged up 0.1 percent, the STOXX Europe 600 was flat and the Nikkei 225 rose 0.7 percent.

“Stocks are not cheap, and it’s tough to find something that looks inexpensive, but we’ve seen them much more expensive and we should continue to grind higher as we get into earnings,” said John Brady, managing director at RJ O’Brien & Associates.

Phil Orlando, chief equity market strategist at Federated Investors, agrees. “We’re expecting good numbers and I think we’ll break to the upside if the numbers come in positive, but markets are always vulnerable to any kind of disappointment,” he said.

However, Avi Gilburt wrote that while he is “still looking for a much higher U.S. stock market in 2017”, he expects further weakness until May.

This decline represents a buying opportunity, he wrote, as he expects the S&P 500 to “rally to the 2,500 region into the summer”.