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Weekly Economic Data Review
Overall it was a very solid week for the economy and the market, which rose 0.7% in the past five days.
Of course with earnings season starting to kick into high gear the economic fundamentals took a back seat to the earnings reports that should be driving the market.
As of the end of last week 19% of S&P 500 companies had reported, with 73%, and 77% beating earnings and sales expectations, respetively.
This is pretty great news, if the trend can hold through the rest of earnings season. That’s because, while EPS can be managed through various account gimicks, sales can’t.
In addition, strongr than expected sales would point to strong consumer spending, which is the lifeblood of the US economy.