Equity markets are ready for a busy earnings season and whatever it may bring. The start of the season came without much excitement due to the rising threat of inflation on bank earnings. While banks are well-positioned to benefit from the rising interest environment that is developing, they are also susceptible to the same inflationary pressures that are impacting the rest of the economy. This week will be another lackluster week for earnings, the peak of peak season begins the week after.

The biggest threat to the market right now is COVID. The rising number of positive cases threatens to keep America home sick, if nothing else and that is a threat to the economy, corporate earnings, the stock market. With the global supply chain already strained another hiccup could have long-lasting and far-reaching repercussions.