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This week’s Friday Update includes a summary of the recent Cabot Turnaround Letter and comments on earnings from Walgreens Boots Alliance (WBA). There were no ratings changes. We also summarize the podcast and include The Catalyst Report.

After two weeks of mini-crash action, the indexes have snapped back well this week—the big-cap indexes are up in the 3% to 4% range coming into today (and this morning should open decently higher), with growth-oriented funds doing even better and even the broader indexes up a couple of percent.

This week’s Friday Update includes comments on our companies. There were no ratings changes or earnings reports. Look for the July edition of the Cabot Turnaround Letter next week, where we update our semi-annual Equity Market Outlook and our High Yield Bond outlook and offer up our July feature recommendation.

The market rallied strongly off the lows last week, moving 6% higher on the week.
Is the bottom in?


I doubt it. The market has behaved this way all year. There has typically been a rally after intense selling and a new low. But stocks have difficulty generating any lasting upside traction in the face of high inflation, an aggressive Fed, and a slowing economy.

The mid-May to early-June period saw the market take a few baby steps, which we wrote about here and in the Monday issues—it had put itself in position to do some good things in the intermediate term, but we had to see some honest-to-goodness strength and upside follow-through.

This week’s Friday Update includes comments on earnings from Duluth Holdings (DLTH). Two stocks are at or near our price targets and we summarize the podcast.

It’s happened. The market’s flirtation with the bear market precipice is over. It’s now a full-blown tawdry affair. The S&P 500 officially crossed into a bear market at Monday’s close (down 20% or more from the high on a closing basis).

That means the bull market that began in March of 2020 has ended after 2 years and 3 months. The culprit is inflation, and the Fed’s likely reaction to it. It had been hoped that inflation was peaking and would recede all by itself without the Fed having to be as aggressive as feared. But those hopes were dashed when May inflation came in at a worse-than-expected 8.6%, the highest yet and the worst in more than forty years.

This week’s Friday Update includes comments on our companies. There were no ratings changes or earnings reports.

While the market began to show some encouraging signs later in May and into early June, the past week and a half has been a mess. The S&P 600 Small Cap Index slipped back to its May low near 1139 on Monday and was holding OK there, until today.

This week’s Friday Update includes comments on our companies. There were no ratings changes or earnings reports.

This week’s Friday Update includes a summary of the recent Cabot Turnaround Letter, and comments on earnings at Macy’s (M). We also summarize the podcast and include The Catalyst Report.

The market has rallied strongly off last week’s lows. Buy I’m not buying into it. Stocks are already floundering badly again today.
The S&P 500 came to within close to 1% of a bear market last week, down 20% from the high on a closing basis before several up days and a better than 4% rally off the low. The index has posted six consecutive weeks of decline, the longest such streak in more than a decade.

The major indexes have been up and down this week, but net-net, there’s not too much change—as of this morning, just about every index and growth fund we watch is down a touch to up less than 1%.

The market’s downtrend has generally continued this week—even including the pre-market rally in the futures, the S&P 500 and Nasdaq are off in the 2%-plus range, though things like small and mid-caps, as well as growth-oriented funds, are close to unchanged.

The market is having one of its better days in a few weeks—as of 2 pm ET, the Dow is up 578 points and the Nasdaq is up 329 points