The S&P 500 hit a record high on Thursday. It eventually slipped a little on Friday and closed at 7,785.76. This was the third week in a row when S&P continued to climb. The Russell 2000 and the equal weight S&P also hit record high. So, it was not just about the big names that contributed to these numbers. Inflation data also dropped this week and it was slightly cooler than expected. July CPI was 3.4% and PPI was 4.7%. PPI was 5.5% in June. September rate hike odds have now fallen to 30% from 42%. The retail sales report was not that great, worst data since May of 2025. The consumer sentiment has dropped to 51.0 from 55.2. Retail earnings from Home Depot, Walmart, Target and Lowe’s will be interesting to watch this coming week.
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Consumer sentiment at 51.0, down from 55.2 in July and well below the 55.0 expected. Inflation is coming down and the market is at record highs, but people feel worse than they did a month ago. Retail earnings this week will tell us if people are actually spending less or are they just feeling worse.
We are almost done with second quarter. 455 S&P 500 companies have reported so far. 87% of the companies have beaten on earnings and 69% have beaten on revenue. Growth is tracking to be around 26% to 29%. To get to this number you have to strip out the one time investment gains at Amazon, Alphabet and Microsoft.
A quiet week after the inflation reports. The housing data on Tuesday is the one I care about, since housing disinflation is doing a lot of the work bringing CPI down.
I made some changes to my brokerage account this week. I sold a few smaller positions and reinvested that money into existing ETF positions.
Stay tuned for the third edition of The Honest Portfolio. It also has details on my latest limit order and my DCA schedule.
This information is for educational purposes only and should not be considered financial advice. Do your own research before making any financial decisions
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