After starting the week with big losses, the Dow (+1.1%), NASDAQ (+2.8%) and S&P 500 (+2.0%) rebounded to finish the week with strong gains and extending their all time highs. Taxable bonds were up slightly (about 0.2%) while tax-free municipal bonds were virtually unchanged.
The week started off with big losses in the markets due to growing concerns of the delta variant of the COVID virus, but snapped back on Tuesday, as many investors felt that the markets were over sold on Monday. Then, corporate earnings results continued to pour in and demonstrated very strong earnings reports for the second quarter, pushing the markets even higher throughout the rest of the week. This week, all eyes are on Tesla and the big tech stocks (Apple, Amazon, Microsoft, Google, and Facebook), as they report their earnings. Based on their market caps, these six companies represent the largest companies in the US. According to an article on Yahoo Finance, 24% of S&P 500 companies have reported their earnings, and 88% of them topped their estimates.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.