This week in the podcast we take a

look at what we learned in the second full week of 2Q21 reporting season. Three

big things you need to know: First, the overall tone from management teams

improved in week 2 relative to week 1, with a focus on the strong demand and

cash deployment backdrop, increased confidence on the 2nd half, and COVID

concerns toned down. Second, while we generally sensed a better tone regarding

the ability of companies to manage through margin pressures, we also came away

with the impression that management teams are inclined to see general

inflationary and supply chain pressures as enduring for a bit longer. Third,

while upward earnings revisions are still happening, we continue to see a

softening in earnings sentiment driven by deterioration in Financials, Consumer

Staples, Health Care, and Utilities specifically and Value, Defensives, and

Cyclicals more broadly.