3 Things to Watch in the Stock Market This Week

^DJI Chart

Stocks rose by a full percentage point last week, buoyed by a strong initial crop of earnings reports. With that gain, the Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) indexes are both up by about 2% so far in 2017 after rising by double-digits last year.

^DJI data by YCharts .

Earnings seasons ramps up over the week ahead as hundreds of companies post results for the final quarter of 2016. A few of the most anticipated reports will come from Under Armour (NYSE: UAA) (NYSE: UA) , Facebook (NASDAQ: FB) , and Apple (NASDAQ: AAPL) .

Apple goes for growth

Apple shares are back at all-time highs heading into Tuesday's report, which is expected to show that the consumer electronics titan returned to sales growth following three consecutive quarters of declines.

In fact, sales growth is likely to stay at just above 20% this quarter and for the foreseeable future, marking a slowdown from the 30% pace it enjoyed as recently as the first quarter of 2016. A surprise slowdown in the U.S. market is offsetting gains internationally to keep Under Armour's growth pace about even with executives' goals.

What's really unnerved investors is the fact that profitability has declined to its lowest level on record as the company drives deeper into athletic shoe sales and spends aggressively to defend market share in the U.S. Those shifts convinced management to lower their earnings outlook through 2018 while preserving their long-term bullishness on the industry. This week's report might produce a large stock price swing if it alters those broad expectations in either direction.

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Demitrios Kalogeropoulos owns shares of Apple, Facebook, and Under Armour (C shares). The Motley Fool owns shares of and recommends Apple, Facebook, Under Armour (A shares), and Under Armour (C shares). The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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