Despite a slew of economic data and earnings reports, it was another LOW volatility week for the major indexes. While we don’t discuss the Dow Jones Industrial Average due to its narrow breadth (30 stocks), one of the stories of the week was the 9th consecutive gain in that index – with 8 of those being records.
BUT that was offset by weakness in the small caps which we’ll talk about below when we look at the Russell 2000.
As of Friday, with 84% of S&P 500 companies having released second-quarter results, 73% have reported better than expected earnings and 70% have beat sales estimates, according to FactSet.
Apple (AAPL) earnings were of course front and center and when it does well it can hold up a lot of indexes:
The iPhone maker reported fiscal third-quarter earnings of $8.72 billion, or $1.67 a share, compared with $7.8 billion, or $1.42 a share, a year earlier. Analysts had forecast earnings of $1.57 a share.
Pretty amazing that a market capitalization this huge is up >30% year to date!Continue reading