NEW YORK ( TheStreet) -- Look for the case of earnings myopia that sent markets higher this week to get a severe test when Wall Street reconvenes on Tuesday.

Nearly 10% of the S&P 500 will open their books during the four-day holiday shortened trading week, including Dow components Bank of America ( BAC), General Electric ( GE), and International Business Machines ( IBM), as well as Apple ( AAPL) and Google ( GOOG), which respectively account for 20.7% and 4.4% of the market cap-weighted Nasdaq-100 index.

This week was just a warm-up. The Dow rose just under 1%, and the good feelings continued as the "Santa Claus Rally" passed the baton to the "January Effect" and stocks marched higher for a seventh week in a row.

And while recent economic data has provided some cause for concern -- from last Friday's middling jobs report to today's reads on consumer prices and retail sales; both of which were slight disappointments -- Wall Street doesn't seem too concerned because it's got a slew of earnings headlines to trade off for the next month and a half.

Add in that the Federal Reserve continues to pledge to follow through on "QE2" and Chairman Ben Bernanke's prediction that the U.S. economy will grow as much as 4% in 2011 and it's easy where the euphoria is coming from in the short-term. Further out, the picture is much more muddled but for now, there seems to be a nice little stretch where it's safe to be bullish about stocks ... as long as the earnings reports cooperate.

That's where things could get interesting. The action this week provided some clues. Alcoa ( AA) got at least partial credit for the market's rise on Tuesday as it supposedly kicked off earnings season on a strong note. But the stock lost ground in the three sessions following its report and ended the week down 2.7%.

Intel's ( INTC) numbers got a warm inital reception, and were credited with boosting the semiconductor capital equipment makers as well, but the stock, which is coming off a forgettable flat performance in 2010, was down 1% when the closing bell sounded on Friday.

So it's early but there's evidence that simply beating earnings estimates may not be enough, given how far the market has come since the start of December.

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