* S&P 500 earnings seen up about 14% in first quarter

* Goldman Sachs ( GS ) reports Monday, JPMorgan ( JPM ), Citigroup ( C ) due

Tuesday

* Netflix ( NFLX ), J&J, PepsiCo ( PEP ) reports also due; PPI highlights

economic data

* Iran developments in focus as US stocks rebound from

post-war declines

By Lewis Krauskopf

NEW YORK, April 10 (Reuters) - Investors will seek

evidence in the coming week that the U.S. corporate profit

engine is humming along, and whether threats to that upbeat

business outlook are emerging from the Middle East war and the

resulting surge in energy costs.

First-quarter earnings season kicks off with reports from

major U.S. banks. Expectations for a strong quarter and year for

profit growth have underpinned bullish outlooks for stocks.

Those expectations have remained intact as the conflict in Iran

took hold over the past month.

"The reason the market still is so robust is because

earnings estimates just keep moving higher. There's yet to be

any sort of negative impact on fundamentals from the war," said

Nick Giorgi, chief equity strategist at Alpine Macro. "If you

start to see actually a bit of a negative cascade from

fundamentals, then all bets are off."

Optimism about calming geopolitical tensions flowed through

markets this week, fueled by a two-week ceasefire deal between

the United States and Iran that followed threats from U.S.

President Donald Trump about a severe escalation of the war.

The S&P 500 as of Friday had recouped nearly all its

decline since the U.S. and Israel began military strikes in late

February, with the benchmark index less than 1% lower over that

period.

But the war remained at the forefront for markets expected

to stay sensitive to Middle East developments into next week.

'HIGH BAR' FOR Q1 RESULTS

An estimated 10% of the S&P 500 will have reported

first-quarter results by next Friday, with a flood of results

due in the following weeks. Aside from banks, major company

results next week include Netflix ( NFLX ), Johnson & Johnson ( JNJ )

and PepsiCo ( PEP ).

Overall S&P 500 company earnings are expected to rise by

about 14% compared to the year-ago period, according to analyst

estimates compiled by LSEG IBES as of Friday. It would be the

sixth straight quarter with double-digit growth, the longest

streak since 2011, according to Mark Hackett, chief market

strategist for Nationwide.

"It is somewhat of a high bar coming into the season," said

Garrett Melson, portfolio strategist with Natixis Investment

Managers Solutions.

Beneath the surface, expectations for the 11 S&P 500 sectors

vary widely. The heavyweight technology sector is projected to

drive earnings up more than 40%, while healthcare sector

earnings are expected to decline 10%, according to LSEG IBES.

One focal point in the reports will be how companies see the

ripple effects of surging oil prices, which stand to increase

costs for an array of businesses and pinch consumer spending.

Even with oil pulling back following the ceasefire deal, U.S.

crude is up about 70% this year.

Overall expectations for full-year results have become more

rosy. S&P 500 earnings are expected to rise more than 19% in

2026, up from an estimated 15% increase as of late February.

"You're going to see whether or not those earnings estimates

hold up for the future or whether they get marked down," said

Brent Schutte, chief investment officer at Northwestern Mutual

Wealth Management Company. "Company guidance becomes incredibly

paramount."

BANKS TO OFFER VIEW OF ECONOMY

Bank reports will provide a crucial window into the

economy's health, investors said, with some concerns about a

slowdown in the labor market ahead of the Middle East conflict.

Goldman Sachs ( GS ) reports on Monday, with JPMorgan ( JPM )

, the largest U.S. lender, due on Tuesday along with

Wells Fargo ( WFC ) and Citigroup ( C ). Other banks report

later in the week.

Their commentary about consumer behavior will be key, Melson

said.

"What they're seeing for spending patterns is going to be

pretty critical to get a sense on just how material is that kind

of slowdown risk from a consumption perspective," Melson said.

Giorgi said he would focus on commentary about lending

activity in light of the more volatile geopolitical backdrop.

"If banks say companies ... are looking past it, they still

need to invest and they're still taking out loans, that would be

a positive signal," Giorgi said.

Outside of earnings next week, investors will focus on a

report on U.S. producer prices that is an important inflationary

gauge.

Oil shocks typically take time to permeate through the

economy, making the war a greater risk should it continue,

Schutte said.

"The longer this goes on ... the greater impact it

potentially has on leaking into U.S. inflation," Schutte said.