Equity markets managed to break a losing streak and closed basically flat for th e week as second quarter earnings

season kicked off. The S&P gained 0.16%, the D ow grew 0.02%, and the Nasdaq lost 0.98%. Friday saw earnings released by financ ial heavyweights J.P Morgan Chase (JPM) and Wells Fargo (WFC), which provided a much-needed boost to the financial sector. Although J.P. Morgan posted losses of $4.4 billion, contaminated by bad trades and write offs strong performance from the ir Investment Bank and Housing unit suggests the bank is on its way back to heal th. Wells Fargo also posted better-than-expected results as the housing sector b oosted their quarterly performance.[1] While these first reports were largely se en as positive, many are still expecting lackluster performance from tech and ot her sectors.[2] Unemployment claims temporarily sank last week; however, a major factor in the d rop is that automakers reduced or missed some of their usual seasonal shutdowns to keep up with demand, leading to fewer summer layoffs. Analysts expect unemplo yment claims to rise again in coming weeks.[3] On a positive note, the rise in d emand for cars indicates that consumer spending on big-ticket items is still str ong. Investors will be paying close attention to Ben Bernanke s speeches to the House and Senate next week, looking for indications that the Fed is considering further q uantitative easing. Last week s FOMC minutes did not mention further easing, Fed was examining additional stimulus tools. This may suggest that policymakers are con cerned about whether their arsenal is running low on firepower. The minutes also show that officials are worried about the effects of tax hikes due in January 2 013 and the spending cuts that will kick in at the end of the year.[4] We worry about this too. Let s hope the politicians do their job. Earnings season will start in earnest next week, and we can expect results to do minate the headlines. A slew of economic reports are also due to be released, ho pefully showing us a way out of the doldrums we ve been experiencing these past few weeks.