US equities rallied 7% last week on stronger than expected earnings reports. The largest broad market ETF, the SPDR S&P 500 (SPY), finished last week at $94.13, up $6.17 or 7% from the prior week’s close.
Earnings from Goldman Sachs, Intel and IBM beat expectations as cost cutting efforts offset lackluster top line results in Q2. Tempering the week’s rally was Google which declined after reporting very weak sales growth.
Over 100 companies will report earnings this coming week includingCaterpillar and Apple.
The Dow Jones U.S. Technology Sector Index Fund (IYW) has IBM and Intel among its top five holdings. IYW was up nearly 9% last week and is now up 53% from the March low.