NEW YORK ( TheStreet) -- With earnings season officially underway, Wall Street is feeling pretty bullish after Alcoa's (AA) report. Keith Bliss, senior vice president of Cuttone & Company, told TheStreet's Debra Borchardt what he's watching.
A few weeks ago there appeared to be worry and hesitation going into earnings season. However, those fears have seemed to ease a bit and have actually turned to optimism, especially after Alcoa beat on top and bottom line estimates. Despite Alcoa's earnings results having little predictive power over the broader market, it was still a positive sign seeing a company report well out of the basic materials sector.
When asked what he was watching in particular, Bliss said that financials were certainly on his radar. Why? Two reasons: Financials are a big part of the S&P 500 and they also provide a good prediction on future economic growth and value in the United States.
Investors won't have to wait long, with both Wells Fargo (WFC) and JPMorgan Chase (JPM) reporting Friday morning. Bliss added that if the banking firms tell investors that credit demand is increasing and that the yield curve will begin to steepen, this will be very positive going forward.Not only will the banks make a lot more money, but they will be able to lend to small businesses, which, in turn, should grow the overall economy as a result, he stated. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell