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"We are in the grinding stage for the next six months to a year and a half before things get better," she said, predicting that tax revenue at the state and local levels will grow at a slower pace and corporate earnings will begin to rise in the early part of next year.
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"The first two quarters are already in the market," he said, "and even if they come in worse than expected, I don't think the market will care as long as investors still feel that the earnings recovery will begin in the third quarter".
Apple's earnings call will begin at 2PM PST.
Elsewhere in corporate America, earnings seasons will begin in full swing, with aluminum producer Alcoa reporting its second quarter numbers after the closing bell Monday.
On Friday, investors took profits while awaiting corporate earnings reports, which will begin to arrive in a flurry in the next few weeks.
Investors are also preparing for the latest corporate earnings reports, which will begin Tuesday, Mr. Stovall said.
Traders are starting to look ahead to the Federal Reserve's two-day policy meeting, which begins Tuesday, and the next round of corporate earnings reports, which will begin in July, he said.
As employees start to recognize that their leaders are talking about new business outcomes innovation instead of quarterly earnings, for example they will begin to behave differently themselves, creating a positive feedback loop.
As news of Hallwood's upcoming projects bear fruit and boost earnings in 1997 investors will begin to focus on its holdings.
Today's fourth-quarter earnings report by Yahoo! will begin a critical test of an indicator that could signal either the end of the bear market or the agonizing continuation of it.
The Continent's major financial institutions will begin reporting earnings next week, and analysts will be waiting to see if they will follow UBS's lead in announcing major changes in response to these pressures.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com