The SPY was up 0.70% this week. Greece agreed to a 4-month extension with its creditors and then gave the market a strong push late Friday. Economic data continues to be solid, the Markit Flash PMI report was 53.5, which is a 7-month high. Europe is starting to show some slow signs of economic growth.

In our 2/7/2015 update we wrote that “if job trends remain strong at some point workers will get a bigger piece of the pie,” and on Friday WMT announce that it will begin increase wages for employees. The point was that if a strong job market leads to wage inflation, that will cut into fat profit margins.