The S&P 500 rallied back this week to again set another high. The index was up 1.0% on the week as large cap domestic equities remain the source of outperformance.
The 2021 second quarter earnings season has started out strong. So far, 20% of S&P 500 companies have reported and earnings and sales growth are coming in a lot stronger than expected.
The S&P 500 inched up to again make a new all-time high led by tech mega-caps. Small caps were down 2.2% and continued their notable underperformance of late. Emerging markets remain down on the month but are not faring as bad as domestic small cap equities.
We were blessed with the largest nonfarm payrolls increase in 10 months in June, with 850,000 jobs added. We also saw unemployment increase from 5.8% to 5.9%, however this is not a bad sign.
The S&P 500 inched up to make a new all-time high. Under the surface, however, things are not so strong with less than 50% of the Index trading above its 50-day moving average.