Summary

- S&P 500 closed at an all-time high of 4,436.52 up from 4,396.26 from last Friday. The Dow closed at an all-time high of 35,208.51.

- The week continued the seasonal ‘chop’ that often pervades the summer months. Epicenter and travel names began recovery on Thursday and continued gains on Friday.

- Earnings have continued to come in historically strong. Revenue and earnings estimates have been beat by the highest level since the first quarter of 2008.

- Despite a plethora of potentially ugly and impactful risks, the economy continues to show organic strength and positive momentum appears to still be accelerating.
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Markets had another choppy week, which is common for this type of year. They also ended at an all-time high despite fears mounting of new virus restrictions. A bumper jobs report this morning certainly helped the market gain direction. The US economy gained nearly 950,000 jobs in July which was well above the 845,000 estimate. Similarly, the unemployment rate fell more than expected from 5.9% to 5.4%, again significantly better than the estimate of 5.7%.

The report has some complicated implications as we will discuss in this week’s Fed Watch below. Find out why the hawks may have their...

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