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Week of August 2, 2021 Thumbnail

Week of August 2, 2021

Greetings,

We hope you are enjoying your summer and staying well and safe.  Here are a few key takeaways from last week's events.

  • Economic Growth:  GDP growth was announced last week and it came in at +6.5% annual rate for the second quarter of 2021.  This was the strongest number since 2003 but  below the 8.5% number that many economists were forecasting.  The Delta Variant will likely dominate the news over the next few weeks and with that concerns over shutdowns that could jeopardize the economic recovery.  
  • Earnings Season: Last week was a very busy week for earnings announcements with 177 companies reporting results.  Earnings were very solid with many of the big tech names reporting strong numbers.  The Federal Reserve again communicated no desire to raise interest rates any time soon and with concerns over rising covid case numbers, it is unlikely they will be giving this any consideration any time soon.  Strong earnings numbers and low interest rates should provide solid footing for market valuations, yet we expect to see some increased volatility over the next few weeks as the markets parse out what the actual impact of localized lockdowns might have on S&P 500 earnings--likely minimal impact if any but uncertainty will likely dominate the headlines.  

Our full recap of last week's events is linked below.  As always, please feel free to reach out to us to schedule a call or in person meeting to review your investment and financial plan.

 John Klobusicky, CFA, CAIA, Managing Partner

717-856-2238 (cell)

jklobusicky@fma-advisory.com

Market Insights - July 30, 2021

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