S&P 500 companies continue to outpace earnings expectations, but not quite as much on the sales side.
But now we are seeing these expectations rise, so the quarters ahead may become a bit more challenging as we may see earnings growth slowing at the same time. Source: Bloomberg, Markets & Mayhem
In most cases, market breadth leads price. NYSE, S&P 500, and Midcap advance/decline lines all made new all-time highs last week.
Small caps are on the verge of new 52-wk highs. Some support for a potential summer rally? Source: Ryan Detrick
"Power Up America" theme is Goldman's top performing basket year-to-date w/+37.5% driven by global data centers' eye-popping demand for power.
17 of the 22 companies from the basket that have reported earnings have beat estimates by an average of +29%. Source: HolgerZ, Bloomberg
Believe it or not, utilities $XLU is now the best performing SP500 ETFsince the start of the year (+13.4%).
Technology $XLV is in the second half of the ranking (+5.4%). So what's going on? Utilities has been on a run as we are reaching the 2nd derivative of the AI trade. Investment bankers are pushing new AI baskets and many of them include some Utilities stocks. Source: Mike Zaccardi
Sell in May and go away? Not in election years…
History shows that the mid-May to mid-June seasonal period is very strong during election years. Source: David Marlin, Goldman Sachs
The real price of the S&P500 has never exceeded the 1929 highs...
...If adjusted for M2 money supply growth 💸 Source. Nicolas Cheron
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
The S&P 500 $SPX - it has now reclaimed its 50D moving average
Source: Barchart
