There are 2 ways to look at this chart:
1/ Mag7 outperformance is justified by positive earnings revision (vs. negative revision for the rest); 2/ The bar has been raised quite high for the Mag7 (so beware if they disappoint) while the bar is low for the other 493 stocks (there is room for positive surprise) Source: Bloomberg, RBC
The S&P 493 earnings have been flat to down for the past five quarters.
2Q is expected to mark the first growth quarter for the Other 493. Could it lead to a more balanced market? Source: BofA
From Mag 7 to... Mag 1
$NVDA is up 122% ytd and contributed to toughly 33% of $SPX gains… Source: Rahul on X
It’s official: Nvidia, Apple, and Microsoft are now bigger than China’s entire stock market.
Source: Bloomberg, www.zerohedge.com
If you exclude $NVDA from the Mag 7, it would be trailing the S&P 500 YTD.
Source: Koyfin
Who needs Mag 7 if one can buy utilities stocks?
Source: Michel A.Arouet
Don't fight the Mag 7?
The ratio of the Mag 7 vs the S&P 493 (S&P 500 ex Mag 7) has just hit another ATH. Source: Bloomberg, HolgerZ
This week is a big one for earnings with Microsoft, Alphabet and Meta all reporting their Q1 numbers.
Note that ex-Nvidia, profit growth for the Mag7 narrows in Q1 and is expected to shrink in 2024 Source: Bloomberg
