Domestic equities moved higher on the week as small caps bounced, just as it looked like the trap door was opening. The S&P 500 tacked on 2.2%, but advances of 3.6% in the NASDAQ and 3.7% in the Russell 2000 helped cyclicals outpace defensives.
The second quarter earnings season approaches a close with 95% of S&P 500 companies having reported results. It was a strong quarter for companies. Earnings and sales are up 94.40% and 25.97% respectively.
Domestic equities moved higher on the week; this time led by small caps. The Russell 2000 advanced 2.5% versus the 1.1% gain in the S&P 500. The NASDAQ was the laggard with a fractional drop.
The big headline this week was the GDP growth miss. GDP was expected to grow by 8.5% this quarter, however actual growth came in at 6.5%. Decreased federal government spending in the quarter slowed overall growth.