Equities were off slightly for the week as investors pulled back ahead of a newsy week highlighted by several earnings announcements, the Federal Open Market Committee (FOMC) meeting and uncertainty on fiscal stimulus extensions.
U.S. companies continued announcing second quarter earnings this week. With 15% of S&P 500 companies reporting, earnings and sales are better than expected. Earnings growth is 14.8% higher than estimated.
Equities advanced on the week despite initial weakness from increasing lockdown measures across the country. The S&P 500 advanced 1.8% on the week, but this time it was led by value and laggard names.
June’s unemployment rate was better than expected despite a resurgence of COVID-19 cases in some states. 11.1% of the U.S. labor force remains unemployed. The rate, a significant increase from last year, is lower than the consensus’ estimate of 12.5%.
Domestic equity markets were up on the week as the second quarter ended. The weekly gain in the S&P 500 was 2.2% and helped bring the quarterly return to 20.5%.