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As was the case last week, the deluge of economic data continues in the week ahead. But first, a look back at what was learned last week. The U.S. economy grew at an inflation-adjusted annualized rate of 6.5 percent in the second quarter. That came as a mild disappointment, but only in comparison to the 8.5 percent pace that had been expected. Growth was held back by a reduction in inventories, the trade imbalance, residential construction, and government spending, as evidence of supply-side constraints were evident in the data. A degree of moderation was also seen in the June durable goods report. Nevertheless, excluding last year’s second quarter, it was the fastest growth since the third quarter of 2003. And it followed the strong 6.3 percent pace of the first quarter. Consumer spending was particularly strong, especially in the services category as the economy continued to reopen. 

MINNEAPOLIS – July 26, 2021 – The Board of Directors of Ameriprise Financial, Inc. (NYSE: AMP) has declared a quarterly cash dividend of $1.13 per common share payable on August 20, 2021 to shareholders of record at the close of business on August 9, 2021.

The first week of earnings season was dominated by better-than-expected results from the major banks, pushing the second quarter year-over-year anticipated growth rate to 69 percent, according to Factset. There was some weakness in lending, but capital markets activity was generally strong. And, of course, the release of loan loss reserves helped. Nevertheless, the BKX bank ETF fell 2.4 percent, contributing to an overall decline of 1.0 percent in the S&P 500^® index. It was the third straight week of declines for the banks, and fifth week in the past six. From its peak on June 1, the BKX is lower by 9.9 percent. The banks were exceeded on the downside last week by energy stocks, which fell almost 8 percent. Consumer discretionary and materials were lower as well. Defensive groups were higher, including utilities, consumer staples, along with real estate.