Stocks closed mostly higher yesterday with the S&P now up for the 6th day in a row, and notching a new all-time high close in the process.
The Dow was up too, making a new all-time intraday high, before finishing just under its record close from August.
Strong earnings continue to rally stocks. As you know, stocks typically go up during earnings season. And with earnings season having just begun, we've got another handful of weeks to go.
In other news, MBA Mortgage Applications slipped -6.3% w/w, with the purchase index down -5.0%, and refi's down -7.0%.
The Fed's Beige Book report showed an economy that continues to rebound, albeit at a bit of a slower pace. The report said that "outlooks for near-term economic activity remained positive, overall, but some districts noted increased uncertainty and more cautious optimism than in previous months." This was attributed to supply-chain disruptions, worker shortages, and earlier fears around the delta variant.
The report also went on to highlight that the continued rise in consumer spending was a bright spot. Same for the rise in manufacturing activity.
Fortunately, with efforts underway to ease supply disruptions, and with the labor force expected to grow, this should increase economic output while simultaneously helping to reduce inflation.
And with falling covid cases, the economy can accelerate its return back to something closer to normal.
After the close, the FDA authorized Moderna and Johnson & Johnson to offer booster vaccine shots. They also said that people can get their booster shots from different vaccine manufacturers than their original shot.
Between falling cases, more vaccinations, and several covid therapeutics in the pipe to treat Covid if you get it (Merck already has a drug, but is waiting on FDA's approval, or at least emergency use authorization), the pandemic should become less and less of an issue as we move forward.
In the meantime, with stocks trading at or near their all-time highs, it won't take much to send them even higher.
And with full-year GDP growth expected to come in at the fastest pace in 37 years, not to mention the prospect for even more stimulus money to be injected into the economy, it looks like there's a lot more upside to go.
So now is the time to start preparing for it. And to do so, be sure to read our latest commentary...
Getting Ready For The Next Leg Up
Best,
