The earnings spotlight turns to blue chips next week with Johnson and Johnson, IBM, Bank of America, Procter & Gamble, Travelers, Dow, American Express and Verizon Communications some of the big names heading into the earnings confessional. Despite the earnings deluge, Elon Musk's pursuit of Twitter could still be the top story of the week with new twists anticipated following the poison pill fired off by Twitter. On the economic calendar, the focus turns to housing with the National Association of Home Builders' survey, a housing starts report, and the existing home sales update all due out. The Philadelphia Fed manufacturing survey and latest PMI prints will also be released.

Bank of America posted first-quarter profit on Monday that exceeded analysts’ estimates, helped by the better-than-expected credit quality of its borrowers. The bank said that profit declined 12% to $7.07 billion, or 80 cents per share, exceeding analyst estimates. Revenue climbed 1.8% to $23.33 billion, roughly matching expectations.

The Goldman Sachs economics team says that there is now a 35% chance of a U.S recession over the next two years, with the labor market a particular problem for the Federal Reserve. The large gap between jobs and workers, which keeps wage growth elevated, has historically only declined during periods of economic contraction