Investment Review - August 2026
- The major U.S. stock indices were mixed in July. The Dow Jones Industrial Average was up 0.32%, the S&P 500 was down by 0.76%, and the Nasdaq Composite declined by 4.15%.
- The U.S. Dollar Index is up on the year by 1.51% but decreased by 1.36% in July. This index measures the value of the U.S. dollar versus six major foreign currencies. A weaker dollar increases the cost of imports, decreases the price of exports to foreign purchasers, and increases the value of overseas revenues and profits earned by U.S. corporations with international operations.
- For 2026, analysts expect S&P 500 companies to grow earnings by 29.1%, revenues by 10.8%, and cash flow by 25.5%. Consensus expectations for 2027 call for continued S&P 500 growth as follows: earnings by 14.4%, revenues by 8.0%, and cash flow by 20.3%. Mid- and long-term stock performance correlates well with earnings, revenue, cash flow, and expected growth. If the economy changes direction, expectations are likely to be revised.
Key Investment Statistics
Sources: FactSet, Yardeni Research, U.S. Bureau of Economic Analysis, The Federal Reserve, U.S. Bureau of Labor Statistics, The Wall Street Journal
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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