One of the historically most volatile months started this week, with the S&P 500 closing at another record high, led by financials and materials, while the VIX hit a two-week low at 16.85. Nasdaq showed some weakness, probably due to a rise in bond yields. Around 88% of the S&P 500 companies reported earnings until now, with 83% beating top-line estimates. This can possibly be explained by the seasonal weakness occurring in August and September and a consecutive demand for protection.
With Q2 earnings season coming to an end and the Jackson Hole Symposium three weeks away, stocks may be lacking catalysts, which could induce a choppy environment.
ONE SIGNAL Xpress returned 0.77% and Xpert -0.48%, compared to 0.67% for the S&P 500. The biggest winner of the week was US T-Bonds, with an increase of +4.79%.