Two Out Of Three - Kuby's Commentary 08.09.2021

Reflecting on the major market-moving storylines, the classic 1977 Meatloaf song, "Two Out of Three Ain't Bad" comes to mind: (1) corporate earnings were great; (2) the jobs report was very strong; and (3) BUT sadly Covid-19 cases are surging. On the earnings front, 89% of the companies in the S&P 500 have reported actual results for Q2 2021 to date. Of these companies, 87% have reported actual EPS above estimates. Turning to the employment report, Friday's headline figure was that employers created nine hundred and forty-three thousand new jobs in July, and the unemployment rate fell from 5.8 percent to 5.4 percent. More than 44,000 Americans are currently hospitalized with COVID-19, according to the CDC, up 30% in a week and nearly four times the number in June. The seven-day average for deaths rose from about 270 deaths per day two weeks ago to nearly 500 a day as of Friday, according to Johns Hopkins University. The stock market embraced "two out of three ain't bad" and closed out the week with the S&P 500 gaining 0.94% at a record high, while the Nasdaq rose 1.11%, and the Russell 2000 advanced 0.97%. Earnings season will wrap up, with just twelve S&P 500 companies reporting results for the second quarter. On the economic calendar, The Bureau of Labor Statistics will report the Job Openings and Labor Turnover Survey (JOLTS) for June on Monday. The BLS also reports CPI on Wednesday and PPI on Thursday, both releases will be carefully watched for any indications of the inflationary pressures being as "transitory" as the Fed has suggested. On Friday, The University of Michigan releases its Consumer Sentiment for August. We believe it is important to monitoring consumer sentiment as a forward-looking indicator of economic activity. Stocks on the Move: CarParts.com Inc (PRTS), Century Casinos Inc (CNTY), Hamilton Beach Brands Holding Co (HBB)