To Our Readers,
Today’s edition of the Weekly Insight is a special one for BTC Capital Management. It represents the completion of 10 consecutive years of producing this publication as our first issue was produced on August 31, 2011.
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.
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.