U.S. Stocks and High-Yield Bonds were up modestly last week, while Treasuries were unchanged to slightly positive.
The S&P 500 gained for a fourth straight week, closing at 2,175. Technology and Financials provided leadership on Friday, up 0.5% and 0.6% respectively. At the same time, the U.S. Dollar has strengthened and Crude Oil has declined. Solid data continued to come out of the U.S. with the PMI Manufacturing Index reading 52.9, higher than the consensus of 51.9.
Twenty-five percent of S&P 500 companies have now reported quarterly results and sixty-eight percent of those companies posted earnings above mean estimates. Financials like Bank of America (BAC) and Charles Schwab (SCHW) reported strong results. In Technology, Microsoft (MSFT), Qualcomm (QCOM), and more made nice weekly gains after showing improvements in their respective businesses. Not every company fared as well, however. Netflix (NFLX), Skyworks Solutions (SWKS), and Honeywell (HON) all declined on what investors perceived as disappointing results. Two hundred and three more companies report results next week, and the FOMC makes an announcement on rates Wednesday, with no change expected.