Flex is the largest global provider of electronic manufacturing services (EMS) and related competencies. In addition to its core printed circuit board (PCB) assembly and systems assembly businesses, the company provides design, logistics, components, enclosures and PCB manufacturing. Flex has expanded its customer base from OEM companies in traditional electronics and technology to nontraditional niches, such as consumer, medical and instrumentation, aerospace-defense and automotive.

Stocks were lower on Thursday in response to earnings from big IT players. Results from Alphabet were solid, but that news was more than offset by disappointing reports from Meta and Microsoft, where spending was a major concern. That said, the script flipped a bit after the close, as earnings news from Apple and Amazon was upbeat, reversing some of the gloom from earlier in the day.

Despite bursts of outperformance, small- and mid-cap stocks (SMID) have underperformed large-caps year to date -- as they have over the past five years. But they may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the trade and tariff debate, or fallout from unrest in the Middle East, the Russian invasion of Ukraine, issues in China, or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps, with the P/E ratio on the Russell 2000 SmallCap Index at 20, compared to a trailing P/E above 26 for the S&P 500. Finally, there are long stretches in the record books when SMID stocks have outperformed large-caps. SMID stocks can be risky. But despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record.

Not a Beach Week Hustle back from the beach, it's an action-packed week. The Fed meets, the jobs report is out, as is a key inflation report, and four more Mag7 companies report earnings. Last week, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all gained about 1%. So far this year, the Dow is up 5%, the S&P 500 has climbed 8%, and the Nasdaq leads with a gain of 9%. Earnings season is at peak volume, with more than 900 public companies reporting this week. The list includes Visa, Procter & Gamble, Merck, Booking Holdings, Boeing, Spotify, Starbucks, and UPS on Tuesday; Microsoft and Meta Platforms on Wednesday; Apple, Amazon, MasterCard, and Anheuser-Busch on Thursday; and Exxon Mobil, Chevron, and Colgate-Palmolive on Friday. At this point, 30% of S&P 500 companies have reported, with 8% growth in corporate earnings compared to the year-ago quarter. This is a solid but slower pace than in the past few quarters. The first quarter logged earnings growth of 14%, following 17% growth in 4Q24, and 9% growth in 3Q24, according to LSEG. For the current quarter, Communication Services is leading, up 37%, while Energy, down 23%, is at the bottom. This week's economic calendar is also jammed. The FOMC will announce its next interest-rate decision on Wednesday afternoon. No change is expected. Wall Street, as usual, will focus on the comments from Federal Reserve Chair Jerome Powell. Other releases include consumer confidence and job openings on Tuesday; GDP on Wednesday; the Personal Consumption Expenditures (PCE) Index on Thursday; and the important July jobs report on Friday. Meanwhile, the Atlanta Fed GDPNow measure currently forecasts 2.4% for 2Q, following a decline of 0.5% for 1Q. The Cleveland Fed Inflation Nowcast forecasts a 2.7% rate for CPI in July, even with the June pace. Mortgage rates stayed flat last week, with the average 30-year fixed-rate mortgage at 6.74%, according to FreddieMac. Gas prices dropped a penny to an average of $3.12 per gallon for regular gas. After this week's Federal Reserve rate decision, the next meeting is on September 17, with odds at 64% for a cut, according to the CME FedWatch rate tool. After that, the central bank meets on October 29 and odds jump to 80% for a cut. Most economists still expect two rate cuts in 2025. Taking a deeper dive into performance, U.S. stocks are lagging global stocks. A leading industrialized global stock market index, the EFA ETF, has surged 19% year to date, while the leading emerging market ETF EEM has gained 18%. U.S. growth stocks, with a year-to-date gain of 9% (ETF ticker IWF), have taken the lead over value stocks, which show an advance of 7% based on the value ETF (IWD). In other asset classes for the year to date, AGG bonds are up 1.3%, gold is up 28%, crude oil is down 7%, and Bitcoin is up 24%. The U.S. dollar is down 10%, tracking DXY. The VIX Volatility Index is at 15, below its historical average of 20 and consistent with a bull market. Sector performance reveals a mixed picture halfway through 2025. The Industrial sector leads with a 17% gain, followed by Information Technology, Communication Services, and Utilities (all up about 12%). Financials (+10%) also is outperforming the broader market. Turning to defensive sectors, Consumer Staples is up 4% and Materials 10%. Consumer Discretionary and Healthcare are around flat-line for the year, while Real Estate (+6%) has turned a bit higher, but continues to struggle amid elevated interest rates.