US big tech revolution steamrolling emerging markets equities in one chart.
What would make this trend reverse? Source: BofA, Michel A. Arouet
BANK EARNINGS >>> Bank of America $BAC stock is down -4% today after reporting earnings down -18% yoy.
$BAC Bank of America Q1 FY24. Revenue -2% to $25.8B ($0.4B beat): • Net Interest income: $14.0B (-3% Y/Y). • Noninterest income $11.8B (-0% Y/Y). Net Income $6.7B (-18% Y/Y). Non-GAAP EPS: $0.83 ($0.06 beat). CET1 ratio of 11.8%. Source: App Economy Insights
The S&P 500 is only down 3.7% from its peak closing price at the end of March.
The median intra-year drawdown since 1928 is -13%. What were seeing today is normal volatility - the first 3 months of the year were abnormally smooth. Source: Charlie Bilello
The sp500 closed below its 50-day moving average today for the first time since last November, ending the 10th longest streak since 1950.
Source: Charlie Bilello
The Mag7's weighting in the SP500 just hit another new high
Source: Cheddar Flow
Corporate insiders are more bearish than they have been in at least one decade
Source: InsiderSentiment.com
Reversion to the meme...
Source: Charlie Bilello
The correlation between equity market volatility and inflation expectations is at the highest level we've seen in decades.
Although the chart below doesn't extend as far back, a similar phenomenon occurred in 1973-1974 as markets faced difficulties whenever inflation reaccelerated. This is especially pertinent now, with energy prices, agricultural commodities, precious metals, copper, global freight costs, and other inflation indicators showing significant resurgence. Source: Tavi Costa, Crescat Capital, Bloomberg
