Last week was a week of gains that came on the heels of four consecutive weeks of losses. The rally was broad, with all indices up by about the same amount in percentage terms. The Dow climbed higher for five straight sessions. Now, the market is back up around year-to-date highs. For the week ending July 17:

Dow: Up 7.3% to 8,743.94

Nasdaq: Up 7.4% to 1,886.61

S&P 500: Up 7% to 940.38

Second-quarter earnings season kicked into high gear last week, as we got a read on the tech sector, the banking sector, and many more.

Earnings fever
General Electric (NYSE: GE), considered a barometer for the economy, given its breadth and depth of businesses, continued to struggle. Its capital unit and its core industrial unit were the cause of GE's hardship, as the financial crisis and recession pressured operations and new orders.

Bank results were clearly divided. Goldman Sachs and JP Morgan Chase (NYSE: JPM) fared better than Bank of America (NYSE: BAC) and Citigroup (NYSE: C), which are still being weighed down by their large exposure to the consumer sector. Those with strong exposure to consumer businesses continue to be harder hit. Most expect credit losses to continue and are upping loan loss reserves. Although the financial landscape appears to have stabilized, things are still tough.

Capital market beneficiaries
Goldman is already profiting from the rubble, as it gained market share in the wake of the elimination of competitors due to the financial crisis. The bank, which crushed earnings expectations, had a strong quarter on account of shrewd trading bets, but warned about the sustainability of results in current economic conditions.

JP Morgan reported a 36% increase in second-quarter profits from last year, helped by its capital markets businesses. The bank said certain businesses were beginning to stabilize, and that it’s toying with the idea of reinstating its dividend next year and buying back stock. However, the bank said it expects deterioration in credit to continue.

Consumer exposed
B of A posted better-than-expected earnings, but results were lower compared to the second quarter last year. Credit losses and non-performing assets increased in the quarter. CEO Ken Lewis acknowledged a tough operating climate through next year, dotted by poor credit, rising unemployment, and a weak global economy. Continued...