This week investors once again waded through a deluge of earnings, while the economic data shifted from a drizzle to a downpour with some additional trade deal showers passing through. For the week the S&P fell >2%, closing below its 20d ma for the first time in over 65 days. The equal-weight lagged by ~100bp this week and the Russell by ~200bp. Earnings results have been strong, at least nominally and on the surface. However it's getting harder to get credit for that. The major market events were a Fed rate decision, Q2 GDP, PCE inflation and monthly payrolls. It was the payrolls that triggered the most significant moves, not only in equities but also in treasuries as the 2yr yield plummeted on a top line miss but more importantly prior months revised sharply lower. That triggered another barrage of social posts from President Trump. Just as we thought the week was over, Fed Governor Kugler announced she was resigning. Next week the economic data slows back down. ISM Services will be one of the bigger releases. Fed Speak will ramp up, and they will have a lot to talk about. We should get a good readout on the the health of the consumer as multiple consumer-facing companies across sectors report earnings. Enjoy the weekend.

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