Stocks Up As Growth Outlook And Earnings In Focus  Image: Bigstock Stocks closed higher yesterday with both the Dow and the S&P making new intraday highs. But they had to settle for only their second-highest close. Once again, a positive outlook on the economy continues to underpin the market. Although, yesterday's Q2 GDP report came in under expectations at 6.5% vs. expectations for 8.0%. While supply chain disruptions and worker shortages have been cited as reasons for higher (temporary) levels of inflation, they can also be partly to blame for the less than expected Q2 GDP growth. But again, the aforementioned issues are transitory.
When should those problems subside? Likely in a couple of months. Extended unemployment benefits will be ending in September, and many of those incentivized to stay home will be 'forced' to return to the workforce. And that will begin to bring relief to both supply shortages and worker shortages while simultaneously easing inflation concerns as well. We'll get another look at the economy today with the Personal Income and Outlays report, the Chicago PMI, and Consumer Sentiment. And we'll get more earnings as well with another 147 companies on deck to report today. And another 1,895 next week. Today is also the last trading day of July. It's been a great month so far. And a great year so far with the Dow already up 14.6%, the S&P up 17.7%, the Nasdaq up 14.7%, and the Russell 2000 up 13.4%. And there's still 5 more months left. And it looks like there's a lot more upside to go. So make sure you're taking full advantage of it. Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
Post a Comment
Post a Comment