Issues
As expected, the market lost a little steam during the past few days, with buyers showing little interest after stocks ramped higher in previous weeks. Of course, the sellers aren’t showing much muscle, either, resulting in a short-term rotational, choppy environment. What about the long-term? Could the rally have already run its course? Sure, it’s always possible, especially given the stop-start environment since early 2011. But the evidence points to an intermediate-term (and longer-term) uptrend in the indexes and most stocks, so you should remain bullish. That doesn’t mean you can’t book a few partial profits on the way up, but you should also hold on to most of your best performers.
This week’s list has some different names, including a few that have recently strengthened after many months of idling. Our favorite of the week is Jazz Pharmaceuticals (JAZZ), a former small-cap leader of 2010 and 2011 that consolidated for the better part of a year before breaking out last week.
| Stock Name | Price | ||
|---|---|---|---|
| Computer Sciences (CSC) | 0.00 | ||
| Concur Technologies (CNQR) | 0.00 | ||
| Google Inc. (GOOG) | 0.00 | ||
| HCA Healthcare (HCA) | 137.60 | ||
| Jazz Pharmaceuticals (JAZZ) | 0.00 | ||
| Mellanox Technologies (MLNX) | 92.00 | ||
| MCO (MCO) | 0.00 | ||
| Phillips 66 (PSX) | 0.00 | ||
| Barrick Gold (GOLD) | 27.20 | ||
| Royal Gold, Inc. (RGLD) | 129.66 |
The market bolted ahead last week, cheered by news that the Federal Reserve was joining the European Central Bank in embarking on new money-printing programs. The strength was so broad, in fact, that we saw nearly 750 stocks on the NYSE and Nasdaq hit new 52-week highs on Friday, the highest level since early 2011. In the long run, such strength usually portends more strength; uptrends don’t up and die after exhibiting so much momentum. Short-term, however, the market almost always has a digestion phase after such a powerful romp; we don’t expect a huge, punishing retreat, but we do think patience could pay off with many stocks during the next couple of weeks. Bottom line: You should remain bullish, but keep your feet on the ground and look for advantageous entry points.
This week’s list has a heavier commodity flavor than we’ve seen in some time—that’s not a surprise given the central bank action. Our favorite of the week is Silver Wheaton (SLW), a unique silver firm that owns stakes in many mines. With precious metals back in favor, we think buying SLW on weakness will pay off.
This week’s list has a heavier commodity flavor than we’ve seen in some time—that’s not a surprise given the central bank action. Our favorite of the week is Silver Wheaton (SLW), a unique silver firm that owns stakes in many mines. With precious metals back in favor, we think buying SLW on weakness will pay off.
| Stock Name | Price | ||
|---|---|---|---|
| ANN (ANN) | 0.00 | ||
| Cameron (CAM) | 0.00 | ||
| The Gap, Inc. (GPS) | 0.00 | ||
| Lululemon Athletica (LULU) | 304.69 | ||
| Martin Marietta Materials (MLM) | 261.52 | ||
| NXP Semiconductors (NXPI) | 0.00 | ||
| Pioneer Natural Resources (PXD) | 0.00 | ||
| PulteGroup (PHM) | 45.93 | ||
| Rackspace (RAX) | 0.00 | ||
| Silver Wheaton (SLW) | 0.00 |
The market and many leaders bolted ahead last week, which is just what we wanted to see as the big investors came back from the beach; it’s clear the buyers are in control. That said, despite some heady gains, we wouldn’t call this a runaway bull market—we’re seeing some under-the-surface rotation every few days, with money cycling out of some stocks and sectors and into others. That is totally orderly and, over time, healthy, but it does mean you get some periodic weakness in favored names. Thus, keep your feet on the ground, and look to use pullbacks as buying opportunities in the best stocks. As for winners, you should generally hold on to your best performers, though taking partial profits here and there (hopefully on the way up) is a good idea.
This week’s list is another potpourri of stocks and sectors, most of which have unique catalysts for higher prices. Our favorite of the group is Urban Outfitters (URBN), part of the very strong retail group. The stock is following through beautifully from a huge earnings gap a couple of weeks ago. Try to buy on weakness.
This week’s list is another potpourri of stocks and sectors, most of which have unique catalysts for higher prices. Our favorite of the group is Urban Outfitters (URBN), part of the very strong retail group. The stock is following through beautifully from a huge earnings gap a couple of weeks ago. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| Affiliated Managers Group, Inc. (AMG) | 0.00 | ||
| eBay Inc. (EBAY) | 0.00 | ||
| Fortune Brands Home & Security (FBHS) | 81.02 | ||
| GHL (GHL) | 0.00 | ||
| IPG Photonics (IPGP) | 0.00 | ||
| Men’s Wearhouse (MW) | 0.00 | ||
| ServiceNow (NOW) | 341.86 | ||
| Tesoro (TSO) | 0.00 | ||
| Urban Outfitters (URBN) | 0.00 | ||
| Valero Energy (VLO) | 97.40 |
Given how tenuous the market looked heading into August, it’s hard not to be pleased with how the month turned out—the wild volatility of May, June and July subsided, leadership emerged and most stocks moved higher. We latched onto more than a few solid winners, which we’re pleased with. But now, with the market having pushed back toward its springtime highs, the rubber is likely to meet the road—the set-ups are there for the indexes and many leading stocks, it’s a matter of whether big investors back from vacation are willing to push stocks higher. Right now, the evidence remains bullish, so we remain optimistic that higher prices are ahead.
This week’s list has many of those set-ups; several stocks have tightened up during the past two or three weeks after bullish earnings reactions. Our favorite of the week is Eagle Materials (EXP), one of many housing-related stocks that look to be near good entry points.
This week’s list has many of those set-ups; several stocks have tightened up during the past two or three weeks after bullish earnings reactions. Our favorite of the week is Eagle Materials (EXP), one of many housing-related stocks that look to be near good entry points.
| Stock Name | Price | ||
|---|---|---|---|
| Agrium (AGU) | 0.00 | ||
| Apple (AAPL) | 248.94 | ||
| Cirrus Logic Inc. (CRUS) | 0.00 | ||
| Cooper Tire (CTB) | 31.50 | ||
| CYT (CYT) | 0.00 | ||
| Eagle Materials Inc. (EXP) | 0.00 | ||
| The Flowserve Corporation (FLS) | 54.70 | ||
| Medivation (MDVN) | 0.00 | ||
| Toll Brothers Inc. (TOL) | 0.00 | ||
| Zillow (Z) | 76.64 |
The market encountered a little wave of selling last week, with a big reversal on Tuesday and some follow-through selling on Thursday. But leading stocks held up well, and in fact, we continue to see more and more stocks joining the party. Sure, it’s not a wild bull market, and yes, there’s always the chance that post-Labor Day some big investors will sell into the recent rally. But there’s also the chance that this under-the-radar advance (most investors still believe the market is languishing) will gather steam! As always, it’s best to go with the evidence, and today, that evidence is bullish.
The expanding leadership can best be seen in our recent Top Tens, including this week’s list, which has all kinds of stocks and sectors. Our favorite of the week is Teradata (TDC), a leading play on the “big data” trend. The stock has stormed back this month and looks ready to assault new-high ground soon.
The expanding leadership can best be seen in our recent Top Tens, including this week’s list, which has all kinds of stocks and sectors. Our favorite of the week is Teradata (TDC), a leading play on the “big data” trend. The stock has stormed back this month and looks ready to assault new-high ground soon.
| Stock Name | Price | ||
|---|---|---|---|
| Chico’s FAS (CHS) | 0.00 | ||
| The Hain Celestial Group, Inc. (HAIN) | 0.00 | ||
| IACI (IACI) | 0.00 | ||
| JAH (JAH) | 0.00 | ||
| Mellanox Technologies (MLNX) | 92.00 | ||
| NetSuite, Inc. (N) | 0.00 | ||
| Sherwin-Williams (SHW) | 526.09 | ||
| SolarWinds (SWI) | 0.00 | ||
| Teradata Corporation (TDC) | 0.00 | ||
| TFM (TFM) | 0.00 |
The past month of market action reminds us of the people we see on the beach who tip-toe into the ocean, wait for their feet to adjust to the cold, then wade in up to their knees ... then their waist ... and finally dunk their heads in. That’s the way buyers have been acting of late, first nibbling on weakness, then buying in bigger lots, and now we’re seeing real leadership emerge. Granted, it’s not the most powerful situation we’ve ever seen, and volume has been generally light as we approach Labor Day. But there’s enough evidence to switch our Market Monitor into the bullish camp; that’s not a reason to go fully invested today, but it is our way of saying that, if you see a good set-up, go after it.
This week’s list continues the trend of enticing charts with solid growth stories. Our favorite of the week is Michael Kors (KORS), a fast-growing retailer that exploded out of a six-month base last week after a great quarterly report. It’s a volatile stock, so use a loose stop, but we think it’s buyable around here or on any weakness.
This week’s list continues the trend of enticing charts with solid growth stories. Our favorite of the week is Michael Kors (KORS), a fast-growing retailer that exploded out of a six-month base last week after a great quarterly report. It’s a volatile stock, so use a loose stop, but we think it’s buyable around here or on any weakness.
| Stock Name | Price | ||
|---|---|---|---|
| ANN (ANN) | 0.00 | ||
| ASML Holding (ASML) | 350.01 | ||
| CF Industries (CF) | 45.23 | ||
| Francesca’s Holdings Corporation (FRAN) | 0.00 | ||
| Home Depot (HD) | 0.00 | ||
| LyondellBasell Industries NV (LYB) | 0.00 | ||
| Michael Kors Holdings Limited (KORS) | 73.22 | ||
| Palo Alto Networks (PANW) | 236.92 | ||
| Regeneron Pharmaceuticals (REGN) | 512.96 | ||
| Tesoro (TSO) | 0.00 |
The past three weeks have done a lot to improve the market’s stance, in our view. At long last, the action of the indexes and most potential leaders has tightened up; no longer are names gapping up or down randomly based on overseas news. And this tightness has, in the case of many stocks, come after a period of accumulation. In other words, we’re seeing a change of character for the good—it looks like many stocks are poised for a move higher. Until that move really begins, we’ll leave our Market Monitor in neutral territory ... but be sure to have your shopping list ready should the bulls flex their muscles.
This week’s list continues the string of high-potential stocks that are either finishing up their base-building work, or have already pushed to new highs ahead of the market. Our favorite is Verisign (VRSN), a steady growth play as the leading Internet domain registrar. Try to buy on weakness.
This week’s list continues the string of high-potential stocks that are either finishing up their base-building work, or have already pushed to new highs ahead of the market. Our favorite is Verisign (VRSN), a steady growth play as the leading Internet domain registrar. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| Express Scripts Holding Company (ESRX) | 79.25 | ||
| Five Below (FIVE) | 134.58 | ||
| Mindray Medical (MR) | 0.00 | ||
| Ocwen Financial (OCN) | 0.00 | ||
| Pharmacyclics (PCYC) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| SeaDrill Limited (SDRL) | 0.00 | ||
| Team Health Holdings (TMH) | 0.00 | ||
| VeriSign (VRSN) | 190.71 | ||
| Weyerhaeuser (WY) | 0.00 |
Last week didn’t start off so well, with the major indexes sagging during the first four days; however, many potential leaders that popped higher the week before held firm. And then, on Friday, the market bolted higher! Clearly, we’re still in a choppy and tricky environment, but the action we’ve seen during the past two or three weeks looks like accumulation to us; at the very least, it looks like the sellers have lost their grip on things. We’re keeping our Market Monitor in neutral territory because it’s still early; many stocks are simply repairing the damage they suffered since April, as opposed to launching into new advances. But we’re growing more encouraged, and it’s fine to ratchet up your aggressiveness by one step.
This week’s list has many enticing names and growth stories from a variety of industries. Our favorite of the week is Athenahealth (ATHN), which isn’t at an ideal buy point but has shown a classic huge-volume breakout followed by tight trading ever since. The story is great and we think you can start a position on any dip.
This week’s list has many enticing names and growth stories from a variety of industries. Our favorite of the week is Athenahealth (ATHN), which isn’t at an ideal buy point but has shown a classic huge-volume breakout followed by tight trading ever since. The story is great and we think you can start a position on any dip.
| Stock Name | Price | ||
|---|---|---|---|
| Acuity Brands (AYI) | 0.00 | ||
| Apple (AAPL) | 248.94 | ||
| Athenahealth (ATHN) | 0.00 | ||
| CAB (CAB) | 0.00 | ||
| Cirrus Logic Inc. (CRUS) | 0.00 | ||
| The Gap, Inc. (GPS) | 0.00 | ||
| Seagate Technology (STX) | 0.00 | ||
| ServiceNow (NOW) | 341.86 | ||
| Tesoro (TSO) | 0.00 | ||
| Western Refining (WNR) | 0.00 |
Last week was shaping up to be another chop-fest but the market took off on Thursday and Friday ... and for the first time, we saw some leading stocks rally and, importantly, build on those gains. (In recent weeks stocks were quickly sold after any strength.) It’s a good ray of light, though we haven’t seen enough power from the market and from potential leaders to switch our Market Monitor out of its neutral stance; we’re a bit more optimistic than last week but still need to see more bullish evidence before we put on our bullish hats. For now, then, stick with the strategy of buying on weakness, keeping some cash on the sidelines and watching your stops.
The good news is that last week’s action brought more stocks to the fore; we’re seeing many more good-looking launching pads, and we saw more breakouts on earnings, many of which are showcased in this week’s list. Our favorite of the group is IAC Corp. (IACI), a conglomerate of Internet businesses that has been in a steady uptrend for years and just blasted off on earnings last week.
The good news is that last week’s action brought more stocks to the fore; we’re seeing many more good-looking launching pads, and we saw more breakouts on earnings, many of which are showcased in this week’s list. Our favorite of the group is IAC Corp. (IACI), a conglomerate of Internet businesses that has been in a steady uptrend for years and just blasted off on earnings last week.
| Stock Name | Price | ||
|---|---|---|---|
| 3D Systems (DDD) | 0.00 | ||
| Align Technology (ALGN) | 316.20 | ||
| Equinix, Inc. (EQIX) | 547.73 | ||
| IACI (IACI) | 0.00 | ||
| NetSuite, Inc. (N) | 0.00 | ||
| Regeneron Pharmaceuticals (REGN) | 512.96 | ||
| SolarWinds (SWI) | 0.00 | ||
| Under Armour (UA) | 0.00 | ||
| WPI (WPI) | 0.00 | ||
| Western Digital Corporation (WDC) | 0.00 |
The market succumbed today to some bad news from Europe, although some buyers did support shares after the early-morning dip. Net-net, today and last Friday were bad, but the major indexes remain range-bound; amazingly, the Nasdaq is now in the midst of its sixth 4% swing up or down since early June, and yet, has made basically no progress during that time. It’s choppy out there! Thus, we see no reason to change our Market Monitor from its neutral position. As for individual stocks, it, too, is a mixed bag—some big leaders broke down last week, but many are still base-building and a couple actually poked into new-high ground after solid quarterly reports. All in all, a little buying is fine, but do your buying on weakness, keep positions smaller than normal and adhere to your stops.
This week’s list is a hodgepodge of stocks from different industries; most are strong for individual reasons (earnings, etc.). Our top pick is PPG Industries (PPG), which isn’t an exciting company, but it delivered a solid earnings report and announced a merger that kicked the stock higher. We think it could do well if bought on pullbacks.
This week’s list is a hodgepodge of stocks from different industries; most are strong for individual reasons (earnings, etc.). Our top pick is PPG Industries (PPG), which isn’t an exciting company, but it delivered a solid earnings report and announced a merger that kicked the stock higher. We think it could do well if bought on pullbacks.
| Stock Name | Price | ||
|---|---|---|---|
| A.O. SMITH (AOS) | 0.00 | ||
| ASML Holding (ASML) | 350.01 | ||
| DVA (DVA) | 0.00 | ||
| eBay Inc. (EBAY) | 0.00 | ||
| Medivation (MDVN) | 0.00 | ||
| Mellanox Technologies (MLNX) | 92.00 | ||
| PPG Industries (PPG) | 0.00 | ||
| Skyworks Solutions (SWKS) | 0.00 | ||
| USG Corp. (USG) | 0.00 | ||
| WOR (WOR) | 0.00 |
Friday’s big surge upward—200 points for the Dow—was a clear bullish sign, a reminder that there’s lots of cash sitting on the sidelines waiting for a reason to get back into the market, and a reminder that when those billions of dollars eventually do find their way back into stocks, prices will skyrocket! Yet it’s been hard for the market to maintain a strong uptrend as the tug-of-war between stocks and bonds continues. And it’s not the yields keeping people in bonds these days, it’s simply fear. Thus our Market Monitor remains in the neutral zone—which means while it’s fine to target some attractive situations, you should keep some cash in reserve until the broad market is more supportive, and you should continue to practice risk management. That means buying on dips, not at new highs. It means taking some profits off the table when they come easily. And it means cutting losses short when things go against you.
We’re still very enthusiastic about the homebuilding sector, and our Editor’s Choice this week is Ryland, a homebuilder that’s appeared here this year twice before and has great potential to keep on climbing. Also attractive are companies in fertilizer, energy, electronic health records and more. Enjoy the issue and enjoy the summer!
We’re still very enthusiastic about the homebuilding sector, and our Editor’s Choice this week is Ryland, a homebuilder that’s appeared here this year twice before and has great potential to keep on climbing. Also attractive are companies in fertilizer, energy, electronic health records and more. Enjoy the issue and enjoy the summer!
| Stock Name | Price | ||
|---|---|---|---|
| Agrium (AGU) | 0.00 | ||
| Athenahealth (ATHN) | 0.00 | ||
| Cabot Oil & Gas (COG) | 0.00 | ||
| CLGX (CLGX) | 0.00 | ||
| Marathon Petroleum Corporation (MPC) | 0.00 | ||
| Ryland (RYL) | 0.00 | ||
| Spirit Airlines (SAVE) | 57.03 | ||
| TripAdvisor (TRIP) | 55.14 | ||
| Weyerhaeuser (WY) | 0.00 | ||
| Zillow (Z) | 76.64 |
The market continues to show some overall improvement in tone, but last Friday’s jobs-induced decline and today’s low-volume dip makes it clear that not all investors are rowing in the same direction. Thus, we’ll leave our Market Monitor in the neutral column until we see definitive signs of buying. The good news is that, with earnings season beginning this week (and a deluge of reports starting next week), we’ll likely get an answer relatively soon as to whether this rally is the real McCoy. For now, we’re still leaning optimistic, so it’s fine to own a few resilient names, but we advise waiting until you begin to make some real money before you become more aggressive.
This week’s list has a few newer names to consider; in fact, there are only a couple of early-year leaders featured today. Our favorite of the week is Nationstar Mortgage (NSM), which is set to become the leading non-bank mortgage servicer in the country. The stock is extended, so try to buy on weakness.
This week’s list has a few newer names to consider; in fact, there are only a couple of early-year leaders featured today. Our favorite of the week is Nationstar Mortgage (NSM), which is set to become the leading non-bank mortgage servicer in the country. The stock is extended, so try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| CF Industries (CF) | 45.23 | ||
| GNC Holdings (GNC) | 0.00 | ||
| Lions Gate Entertainment Corp. (LGF) | 0.00 | ||
| Meritage Homes (MTH) | 102.20 | ||
| Nationstar Mortgage (NSM) | 0.00 | ||
| Spectrum Pharmaceuticals (SPPI) | 19.31 | ||
| Stratasys (SSYS) | 0.00 | ||
| SYNC (SYNC) | 0.00 | ||
| TFM (TFM) | 0.00 | ||
| Web.com (WWWW) | 0.00 |
Updates
WHAT TO DO NOW: It’s not 2008 out there, but the market environment remains very challenging, especially for growth, where most indexes, funds and stocks are struggling. That said, we have started to see some growth names emerge on the upside, and our watch list is growing—if we can see more than a day or two of strength, we’d like to put some money to work. But until then, we’re content to stay close to shore and patiently wait for growth stocks to get moving. In the Model Portfolio, we’re placing Axsome Therapeutics (AXSM) on Hold tonight; our cash position is still just above 50%.
It’s been an interesting week here in Rhode Island, where most people are finally dug out from the roughly three feet of snow that fell across the state Sunday night and into Monday.
Growing up in Vermont, major snowstorms were certainly disruptive. But more often than not, it was all about how we would get to the ski resort without going off the road.
Growing up in Vermont, major snowstorms were certainly disruptive. But more often than not, it was all about how we would get to the ski resort without going off the road.
Hello from sunny Florida!
I am on vacation with my family this week, taking a much-needed break from the harsh, snowy Vermont winter (and narrowly making it down here ahead of the latest blizzard to dump another foot or two of snow on the Northeast). But with so much going on in the market – tariffs rejected! GDP growth slowing! AI panic! – I wanted to provide an update on everything that’s going on with our stocks.
I am on vacation with my family this week, taking a much-needed break from the harsh, snowy Vermont winter (and narrowly making it down here ahead of the latest blizzard to dump another foot or two of snow on the Northeast). But with so much going on in the market – tariffs rejected! GDP growth slowing! AI panic! – I wanted to provide an update on everything that’s going on with our stocks.
It’s the same basic market story as it has been for the last four months. Technology is floundering while other sectors are killing it. But a couple of events occurring this week could potentially change the dynamic.
For value-focused investors, this year’s prologue has been a welcome change from the turmoil experienced in early 2025.
In just the past few weeks, some of last year’s most ignored or underappreciated laggards have posted outsized gains, with rallies that have made even momentum-driven tech stock traders envious. Even more remarkable is the fact that much of that strength has been concentrated in ultra-defensive areas of the market like consumer staples, utilities and healthcare.
In just the past few weeks, some of last year’s most ignored or underappreciated laggards have posted outsized gains, with rallies that have made even momentum-driven tech stock traders envious. Even more remarkable is the fact that much of that strength has been concentrated in ultra-defensive areas of the market like consumer staples, utilities and healthcare.
The market rotation continues to be the main story out there this week, though rumblings of a potential strike on Iran, an update from the January FOMC meeting, and a slew of earnings reports and economic data releases have been giving investors plenty to think about.
In terms of the rotation, the equal‑weight S&P 500 ETF (RSP) is up 5.5% so far this year, illustrating that leadership is broadening beyond the narrow group of mega‑cap stocks that drove much of last year’s performance.
Year to date, the S&P 600 SmallCap Index is up 8.3% and the S&P 400 Mid‑Cap Index is up 7.9%. Both are comfortably outperforming the S&P 500, which is up just 0.1%, and the Nasdaq, which is down 2.1%.
In terms of the rotation, the equal‑weight S&P 500 ETF (RSP) is up 5.5% so far this year, illustrating that leadership is broadening beyond the narrow group of mega‑cap stocks that drove much of last year’s performance.
Year to date, the S&P 600 SmallCap Index is up 8.3% and the S&P 400 Mid‑Cap Index is up 7.9%. Both are comfortably outperforming the S&P 500, which is up just 0.1%, and the Nasdaq, which is down 2.1%.
Happy Chinese New Year! The year of the horse is upon us.
China is expecting an incredible 9.5 billion trips to be made during the 40-day Lunar New Year travel period. Chinese automakers are also on the move as the country’s numerous brands sold nearly 200,000 vehicles in Britain last year, doubling their market share to almost 10%.
China is expecting an incredible 9.5 billion trips to be made during the 40-day Lunar New Year travel period. Chinese automakers are also on the move as the country’s numerous brands sold nearly 200,000 vehicles in Britain last year, doubling their market share to almost 10%.
As U.S. investors have shifted from risk-on to risk-off mode in recent months, a clear disparity between the “haves” and the “have-nots” has materialized.
Let’s start with the “have-nots.” Financials have fared the worst so far this year (-4.7%), followed by technology (-3.1%), communication services and consumer discretionary (-2.8% each). The downturn in the two tech-related sectors in particular is a stark departure from recent years, when technology led the charge of the current bull market.
Let’s start with the “have-nots.” Financials have fared the worst so far this year (-4.7%), followed by technology (-3.1%), communication services and consumer discretionary (-2.8% each). The downturn in the two tech-related sectors in particular is a stark departure from recent years, when technology led the charge of the current bull market.
Cyclical stocks are soaring and technology is floundering in the transformed market.
The bull market is turned upside down. For most of the first three years, technology, and particularly AI stocks, soared while most other stocks did very little. Now, previously meandering stocks are killing it while technology sinks.
The bull market is turned upside down. For most of the first three years, technology, and particularly AI stocks, soared while most other stocks did very little. Now, previously meandering stocks are killing it while technology sinks.
Strong fourth-quarter earnings are confirming what the market was already doing.
Current estimates based on earnings reported so far are for 13.2% overall S&P earnings growth for the quarter. It’s a solid quarter and the fifth straight quarter of double-digit earnings growth. In terms of sector performance, cyclical companies are killing it, and technology is floundering, just like before earnings.
Current estimates based on earnings reported so far are for 13.2% overall S&P earnings growth for the quarter. It’s a solid quarter and the fifth straight quarter of double-digit earnings growth. In terms of sector performance, cyclical companies are killing it, and technology is floundering, just like before earnings.
Like many coffee aficionados, I have something of a love/hate relationship with Starbucks (SBUX). My main gripe is that the company’s food and beverage offerings have always been pricey compared to the fare served in most fast-food restaurants and run-of-the-mill coffee houses.
The outperformance of small caps continues.
Through Tuesday’s close, the S&P 600 is up 10% year to date versus just 1.6% for the S&P 500.
All but three small-cap sectors are outperforming their large-cap counterpart. The strongest small-cap sectors are materials (+20%), energy (+23%), industrials (+17%), and tech (+11.4%).
Through Tuesday’s close, the S&P 600 is up 10% year to date versus just 1.6% for the S&P 500.
All but three small-cap sectors are outperforming their large-cap counterpart. The strongest small-cap sectors are materials (+20%), energy (+23%), industrials (+17%), and tech (+11.4%).
Alerts
We have two changes to the Growth & Income Portfolio.
Portfolios
Strategy
Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.