One thing everyone in the stock-market game should remember is to keep a running tab of the reaction to major news events. While following price is the principal discipline in technical analysis, it should also be a habit on the fundamental side of the aisle. There is no denying that second-quarter earnings and the associated guidance (when given) was not only strong, but (once again) better than expected. That was very obvious in the Information Technology (XLK) sector and in many of the industries that make up the sector.

Earnings season is almost over, with about 97% of S&P 500 companies having reported as of Friday. Many knocked it out of the park, delivering earnings and revenue numbers that were well ahead of expectations. We always look at trends and, as usual, there are companies increasing guidance. Raising guidance is one of our Investing Themes for the second half of 2026. We view management's ability to raise guidance consistently as a catalyst for possible market-beating returns in the quarters ahead. It's even harder for companies to lift guidance during uncertain economic times, as vision is murky. This is true now, as the war in the Middle East drags on. As well, Wall Street has a new chairman of the Federal Reserve, one with a different view about forward-looking guidance (or in this case, a lack thereof). As many companies increased guidance during this earnings cycle, we put out two lists. The first was back on August 3 -- and now we offer up our second list, made up of companies in Argus' fundamental Universe of Coverage. Many of the names in this latest list are in the consumer space, as these companies tend to report at the end of earnings season.

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Earnings continue to roll in this week, but the end is nearing. The big retailers are now in focus. Last week, the Dow Jones Industrial Average fell less than 1% while the S&P 500 and the Nasdaq were up less than 1%. Year to date, all three indices are in positive territory, with the Dow up 12%, the S&P 500 up 14%, and the up 15%. On the earnings calendar, headliners include Home Depot and Toll Brothers on Tuesday; TJX, Lowe's, and Target on Wednesday; Walmart on Thursday; and Williams-Sonoma and BJ's on Friday. Some 91% of S&P 500 companies have reported as of Friday. Earnings so far are up a whopping 52% from last quarter, with Energy and Communication Services leading the charge, and Healthcare at the bottom. On the economic calendar, perhaps the most interesting news this week will come from the minutes from the Fed's July FOMC meeting, which are due to be released on Wednesday. Gas prices ticked up last week by four cents to an average of $4.08 per gallon for regular gas. The Atlanta Fed GDPNow forecast calls for 3Q GDP growth of 4.3%, lower than the 5.8% reported last week. The Cleveland Fed Inflation Nowcast forecast is now at 3.4% for August. Mortgage rates dropped two basis points last week, with the average 30-year fixed-rate mortgage now at 6.67%, according to FreddieMac. The next Federal Open Market Committee rate decision is on September 16. Odds for a rate hike at that meeting are at 33%, much lower than the 42% from last week -- seemingly the result of the recent weak jobs report and mild inflation data. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 13% year to date, while the leading emerging market ETF (EEM) is up 21%. U.S. growth stocks are up 5% year to date when looking at the ETF IWF, while value stocks (IWD) are up 22%. Crude oil prices continue to be volatile. On Friday, oil closed at $82 per barrel and is up 42% for the year. In other asset classes for the year to date, AGG bonds are down 3%, gold is up 1%, and Bitcoin is down 28%. The U.S. dollar is up 1%, tracking DXY. The VIX Volatility Index was about 14 on Friday, below its historical average of 20. Turning to sector performance, the list from first to worst so far in 2026 is Energy (+37%), Information Technology (+33%), Industrials (+20%), Materials (+15%), Real Estate (+12%), Consumer Staples (+11%), Healthcare (+9%), Financials (+6%), Utilities (+3%), Consumer Discretionary (-1%), and Communication Services (-4%).