Salient to Investors:

Anastasia Amoroso at JPMorgan Funds said any reduction in QE could be a slight drag in the short-term as the market is adjusting to rising rates and realizing rising rates do not mean the death of equities.

Economists expect Fed tapering in September and US growth to have slowed to 1 percent in Q2. The median economist expects the ECB to keep its benchmark rate at a record low of 0.5 percent.

The S&P 500 is at 16.1 times reported earnings, close to the highest level since May 2010. 73 percent of the 260 S&P 500 companies so far reporting have beaten earnings estimates and 57 percent have beaten sales estimates.

Timothy Hoyle at Haverford Investments said fundamentals have been good but won’t support a further advance: earnings are coming from efficiencies, lower expenses, and lower interest costs, and not from the end market demand that is missing and necessary for the next leg up.

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