Across the board earnings revisions are allowing markets to move higher, says CFRA's Sam Stovall

Market Outlook - The upcoming months of November and December are historically the best two-month stretch of the calendar year, with strong average price changes and frequency of advances [2] - The consumer discretionary sector has been the second-best performing sector during this period since 1990, indicating potential for market gains [2] Federal Reserve and Interest Rates - There is an expectation that the Federal Reserve may cut rates again in December due to a potential softening job market [2][3] - Current data availability is limited, leading to a cautious approach from the Fed, which is described as "flying blind" [3] Earnings Growth - Earnings expectations have improved from an initial forecast of a 7% gain to approximately 11-12% for the current quarter [4] - There have been upward revisions in earnings projections for the fourth quarter and for 2025 and 2026, contributing to market momentum despite stretched valuations [4][5] Retail Sector Insights - Retail sales are projected to grow by 4.2% for the year, with a strong Q3 expected at 6.3% [7] - The retail sector is anticipated to maintain elevated growth rates, around 4% for 2026, despite concerns about consumer spending [7] Investment Opportunities - The XRT ETF is highlighted as a potential outperformer due to improved momentum and relative strength, particularly if an additional rate cut occurs [8] - Vertiv Holdings is noted for its strong position in the data center infrastructure sector, supported by significant investments from major hyperscalers [9]