Dow, S&P, Nasdaq post best month since 2020, but pitfalls remain

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Dow, S&P, Nasdaq post best month since 2020, but pitfalls remain
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Stock investors celebrated a strong July as the Dow, S&P and Nasdaq notched big gains despite no shortage of downbeat news on the U.S. economy. Can the gains continue?

Former National Economic Council director Larry Lindsey provides insight on the state of the American economy on 'Kudlow.'

"I cannot understand a stock market going up as there is clearly a growth slowdown and probably a recession, and that Fed statement on Wednesday was about as hawkish as any could expect. I have never heard a hawkish Fed and declining economy being good for stocks," former National Economic Council director Larry Lindsey told FOX Business’ Larry Kudlow.

"During the month of July, analysts lowered EPS estimates for the third quarter by a larger margin than average," he wrote in his latest research report. "The market will certainly be watching EPS estimate revisions over the next few weeks to see if analysts continue to lower EPS estimates" for full-year 2022 and 2023 he added.

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