Bulls Unshaken as Profit Duds Rattle U.S. Stocks in Winding Week

  • Start to earnings sends equity benchmark to second weekly drop
  • BMO, RBC, Fundstrat stand pat on bullish year-end outlooks
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A gloomy beginning to earnings season sent U.S. stocks to a second week of losses. A trio of Wall Street’s biggest bulls say don’t worry.

It was a week of twists as the S&P 500 Index alternated between gains and losses, a rarity during the bull market but one that’s now happened four times this year as sentiment is swinging on everything from central-bank policy to the U.S. election and perceptions on the economy’s strength. Earnings took a turn in the spotlight in the latest week, as a profit miss from Alcoa Inc. rattled the market before signs of life from the largest banks buoyed optimism.