Heading into a big earnings week for US equities, there are a few highlights from last to week to consider

Heading into a big earnings week for US equities, there are a few highlights from last to week to consider. Regarding stock valuations, the S&P 500 is trading at 15.6x earnings, which is a fair bit higher than the 5-year average of 14.1, according to Bloomberg. Moreover, it's the highest level since 2009. It could imply equities won't see anywhere near the huge gains we saw in 2013. On the economic front, the news from Friday was mixed. Housing starts came in much lower than expected in December - however, the weather was pretty awful across most of the US. On the bright side, industrial production increased 3.7% year-over-year. At this point, it's very clear that American manufacturing has strengthened in recent months. For the week ahead, keep an eye on earnings, with many big players reporting. (VIEW LINK)