Finance News

The market is going through essentially the most worthwhile season of the 12 months, as historical past reveals

Earnings could give stocks a big boost starting this week.

Ally Invest's Lindsey Bell thinks the third quarter is without a doubt the strongest earnings season for Wall Street.

"We're starting to think about the end of the year through next year, and you hear corporate management teams talking about it," the company's chief investment strategist told CNBC's Trading Nation on Monday. "That excites investors about what's to come."

Bell highlights the uptrend in a special chart. It shows the average change in the S&P 500 by winning season since 2000.

Zoom In Icon Arrows pointing outwards

According to the data, the index rose 2.5% from mid-October to late November, which coincides with the third quarter results. The profit seasons of the second and fourth quarters decrease by an average of 0.3% each.

Bell expects the pattern to continue.

"This is the first quarter in four quarters that earnings estimates actually fell a little lower over the period," said Bell, a CNBC official. "At the same time, we also saw the market move down during the reporting period. We haven't seen that for a good four or five quarters. So the lineup for stocks looks good."

However, she has inflation on her watch list as a possible headwind.

"It will all come down to the comment on margins and pricing power," added Bell. "The performance will be unique. And it will really benefit high quality companies that can handle higher costs and are also able to pass pricing power on to the consumer."

"This reopening trade is coming back alive"

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