Only 30% of the SP500 stocks have outperformed the index year-to-date.
This is slightly higher than the 29% that occurred in 2023. Since 1990, a streak of 2 consecutive years with such a low percentage has happened only during the 2000 Dot-com bubble. By comparison, the historic median is 49% which typically implied healthy market breadth. The S&P 500 has rallied 12% year-to-date largely driven by just a few tech stocks. A few stocks are driving the entire market. Source: The Kobeissi Letter, Richard Bernstein Advisors
Inflow mania >>
Rubner: "Global equity funds have seen $190.5 Billion inflows YTD. This is the second largest equity inflows on record (only 2021 saw more inflows). This is +$1.7B worth of equity inflows per day." Source: The Market Ear
Apple $AAPL forms a Golden Cross for the first time since March 2023 🚨
The last Golden Cross sent shares soaring by 25% over the next 4 months! Source: Barchart
Apple $AAPL … stock up ~12.5% in 2-days, the biggest 2-day move in 15+ years (save a 2-day stretch in Mar’20 off the COVID lows) …
over this stretch, Apple has added nearly ~$400bn in mrkt cap .. larger than the current market cap of 480 co’s ..” - GS desk Source: Carl Quintanilla, Bloomberg
Apple $AAPL closed up 7.26% with its market cap increasing by ~$214 Billion today 🍏
Source: Evan
Goldman Sachs on the mixed impact of corporate stock splits
“Share prices typically rise after a firm announces a stock split. In theory, there is no change in the underlying value of a company when it splits its stock. However, empirically, the academic literature has generally found positive announcement effects around stock splits. We consider a sample of 46 Russell 1000 firms that completed stock splits since 2019. On average, these stocks generated a 4 pp excess return vs. the equal-weight S&P 500 in the week following stock split announcement. However, the stock price did not evidence a clear reaction after the stock split took effect. In addition, because many companies announce stock splits alongside earnings releases, it can be challenging to know how much of the stock rallies are due to the stock split as opposed to strong earnings results”. Source: Goldman Sachs
Goldman and Bank of America expect another bounce as July Communist Party meeting seen including more support measures.
Source: South China Morning Post
Small cap stocks are now down on the year while Large caps are still up 12.5%. $SPY $IWM
Source: Charlie Bilello
