J.P. Morgan Kolanovic & Dubravko -> The recent rise in market cap concentration has been the steepest on record based on >60 years of history
Even narrower leadership than seen during the TMT Bubble. Source: Seth Golden
The Nasdaq-100's rebalancing in one chart from Goldman
On July 24, the weight of the largest 7 stocks in the index will be reduced from 56% to 44%. Apple and Microsoft will remain the largest constituents but their index weights will be reduced to 12% and 10%, respectively. Alphabet, Amazon and Nvidia come next. Broadcom’s index weight will increase the most (by 60 basis points to 3%). It is estimated that roughly $260 billion in mutual funds and ETFs AUM are benchmarked to the Nasdaq 100 $NDX while hedge funds have an estimated $20 billion of net short exposure. Source: David Kostin thru Oktay Kavrak, CFA
Wheat futures jump 3.5% as Ukraine grain deal collapses w/Russia refuses to extend it
The move jeopardizes a key trade route from Ukraine, one of the world’s top grain and vegetable oil shippers, just as its next harvest kicks off. Source: Bloomberg, HolgerZ
Mega caps often looked at as a monolith but that can be misleading …
Mega caps often looked at as a monolith but that can be misleading … for those below via Bloomberg, share price changes and margins are quite different, while Tech is not sole sector represented (Cons Discretionary and Comm Services are included in “Super 7”). Source: Liz Ann Sonder
$XLE Energy sector ETF surging out of this wedge today!
Source: Trend spider
Currently, the 10-year yield is at 3.98%
A move above 4% on the 10-year Treasury yield caused the last 2 blowups in financial markets: - UK pension fund - US regional banks Source: Game of Trades
$ARKK Cathie Wood's innovation ETF pushing to new 2023 highs
Source: Trend Spider
S&P earnings growth is expected to trough in 2Q at -9%
As we enter the us 2Q earnings season, the least we can say is that the bar is low (in terms of expectations) which means that we could see beats on an aggregate level. Goldman Sachs: " Consensus estimates for 2Q growth since the beginning of April have been cut from -6% to -9%." Source: GS, TME