Stocks and High-Yield bonds rallied strongly last week, while Treasuries broadly declined.
The S&P 500 hit all-time highs 4 out of 5 days during the week, closing at 2,161, and breaking out of a year-long trading range. Earnings season kicked off with Alcoa's (AA) solid results, followed by healthy reports from banks like JP Morgan (JPM), PNC Financial (PNC), and more. The Bank of England did not cut rates, but announced stimulus will come in the future, calming some investor uncertainty. U.S. data continued to be better than expected. Retail sales had an excellent June, jumping 0.6%. Microsoft (MSFT) announced a cloud partnership with General Electric (GE) and reported that 350 million devices are now running Windows 10. Macro concerns remain after a large terrorist attack in France and an attempted coup in Turkey. Next week will be full of earnings and should provide more insight of the strength of U.S. companies.