Smooth Ride Higher May Get Bumpy For Markets

U.S. stocks were on the move higher last week as the S&P 500 added a gain of 1.10%. Contrary to the summer doldrums, the S&P gained 5.09% during July and equities are up more than 21% year to date. Second quarter earnings remain mixed; revenues were slightly ahead of expectations and earnings per share were approximately 3% higher than expected. Estimates for the remainder of this year are mostly unchanged. Following a very smooth run higher for stocks since the beginning of 2013, volatility has come out of its dormancy and may be here to stay, for a while.

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