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Market Watch Weekly | July 23, 2021 | The Great Debate... Is Ping Pong a Real Sport?

Erik Dekker - Jul 23, 2021

North American benchmarks clawed their way back to record highs to finish out the week on Friday. Yes, despite Monday’s carnage, equites saw a broad-based rally from a mini flash-crash of sorts. As we have been communicating to clients the last several months, we expect markets to remain choppy, but a fundamental justification for a period of prolonged weakness is missing.

What lies ahead is yet another quarter for consumers to rely on massive stimulus payments, extremely loose monetary policy, and the continued re-opening of a global economy. In fact, we are in week two of strong Q2 earnings season that’s seen over a quarter S&P 500 constituents having already reported, and estimates are continuing to rise for the third and fourth quarters. While the rate of growth for earnings is slowing, they are still growing. Third-quarter earnings are expected to rise 27% from a year earlier, up from 20% on April 1. Fourth-quarter earnings are expected to rise to almost 20%, up from 13% on April 1.

 

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