MARKETS THIS WEEK April 22nd, 2023 (Vica Partners)
Takeaways
- Mixed economic releases indicating more recessionary than inflationary
- Muted performance, S&P 500 -0.09%, Dow -0.36%, Nasdaq -0.30%
- Sectors, Consumer Staples +1.68%, Real Estate +1.59% outperform/ Communication Services -3.05%, Energy -2.54% lag
- SPDR S&P Regional Banking ETF ^KRE +1.75% … in the FDIC we trust!
- YTD Mega Cap Growth has strong ROI (see chart below)
- VIX remains below 20 in April
- Greed dominates Investor buying sentiment
- Chile news on State control over lithium sparks Material Sector selloff
- Oil/ Gas reserves highly depleted with OPEC cuts, Q3,4 opportunity?
- Debt ceiling is probably a no-contest, it can be raised
Earnings/ Topline – 18% of S&P 500 companies reported with +75% beating within 6%
- >17% of S&P 500 companies reported to date with >75% beating estimates within 6% and a blended Q1 YoY EPS growth rate at -6.1%
- On just Revenue, 61% of companies exceeding estimates by 1.6%, bringing the blended growth rate to 2.1%.
- S&P 500 Financials >60% have beaten estimates and mostly BIG banks
- Next week >40% of companies in the S&P 500 will report earnings
Notes
- Industrial and Consumer results look good
- Tech / semiconductor helped by forward guidance
- Housing market remains resilient
- Tesla’s earnings miss disrupted markets
- Airlines and travel remain strong
- Companies with higher IT costs are missing on EPS
Sectors
Key Indexes (50d, 100d, 200d)
S&P Sectors
- 7 Sectors, Consumer Staples +1.68%, Real Estate +1.59% outperform/ Communication Services -3.05%, Energy -2.54% lag
Mega Cap Growth
