The Week Ahead

Last week the Dow Jones industrial index ended at record highs three sessions in a row, while both S&P 500 and Nasdaq ended at more than 6-year highs.

In the week ahead we need to tread the water with caution. This week will bring figures of earnings and guidance from about 177 S&P500 constituents (including 6 Dow components). Serious investors will closely look at earning reports from some of the bellweather companies like 3M, Amazon, Amgen, Apple, AT&T, Boeing, Dupont, Exxon Mobil, Ford, Microsoft, Qualcomm, Texas Instruments.

The week will also be dominated by the latest levels for some economic indicators, including reports on consumer confidence, new and existing home sales, the first quarter gross domestic product growth report and the Federal Reserve's 'beige book' report on the economy. On Tuesday, the National Association of Realtors will release its reading on existing home sales for March -- which will provide a good indication of the direction of a crucial component of US economy. Cautious investors may also keep in perspective the upcoming meeting of Federal Reserve on May 9th and may become too eager to pull some money out of these high peaks before the market feels shaky about the future of the short term interest rate.

Of the 26% of S&P 500 companies that have already reported, 65% of them have beat their forecasts, 17% have met analysts' estimates while 18% have missed. This coming week will give us a clearer idea if Dow Jones have the potential to reach the 13000 level and march forward.