Stocks Down For The Week As Earnings Season Picks Up Steam  Image: Bigstock Stocks closed lower on Friday and for the week, ending the Dow and the S&P's 3-week winning streak, and the Nasdaq's 8-week winning streak. The economy continues to do well. But inflation concerns keep popping up, even though the Fed has tamped them down, the Treasury Secretary has tamped them down, and the 10-year Treasury yield has effectively tamped them down with a -26.4% drop from peak inflation hysteria earlier in March. Nonetheless, last week's pullback was likely more a result of profit taking, and worries over renewed pandemic lockdowns which could hamper the economic recovery, than inflation. However, the major indexes continue to trade near their all-time highs. And with full-year GDP still expected to come in at the fastest pace in 37 years, the growth outlook remains intact. In other news, Retail Sales for June beat expectations with a gain of 0.6% vs. views for a -0.4% decline. Although, May's tally was revised lower from a loss of -1.3% to -1.7%. For the year, however, retail sales are up an impressive 18.0%, topping pre-pandemic levels. Although, Consumer Sentiment disappointed with a lower than expected reading of 80.8 vs. last month's 85.5 and views for a gain to 86.5. Earnings season picks up speed this week with 422 companies on deck. And the pace picks up even more next week with another 1,161 companies reporting. We should also start hearing more about infrastructure, and the administration's proposed budget. Should be a busy week with plenty of market-moving news on tap. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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