The S&P dropped 1.1 percent on Friday, its biggest decline since March 25. Equities lost ground after industrials Honeywell International and General Electric took hits from the strong dollar, while concerns over new trading regulations in China and Greece’s place in the euro zone dented sentiment.
Next week is among the busiest of the earnings season, with results expected from companies including Amazon.com Inc, General Motors, Boeing and Morgan Stanley. The results could help investors gauge the impact of the rise in the greenback and assess the strength of the economy after a string of lackluster economic reports.
“Most companies have been able to beat on the bottom line and miss on the top line, and that has been the story now for quite a while,” said Rick Meckler, president of LibertyView Capital Management in Jersey City.