Last week, equity markets showed tremendous resilience when faced with mounting headwinds. Geopolitical tensions, hot inflation, and a hawkish Fed did little to sway sentiment. The S&P 500 closed relatively flat for the week but up from the session's close and showing support at a critical level, and it may move higher this week. There are several potential headwinds, including the ramp of earnings season, which got started with a bang.

Reports from the Big Banks were better than expected and revealed that too big to fail keeps getting bigger. The takeaways from the results are solid revenue growth, margin expansion, double-digit earnings growth, balance sheet strengthening, and capital returns. However, this week brings reports from dozens of small and mid-sized banks that may not fare well. Other reports include trucking outfit J.B. Hunt Transportation Company and Tesla. The analysts set the bar low for each, so outperformance is expected.