On Friday, we got a great template of what a non-growth rally would be like.  Industrials (XLI) are blistering the way, led by capital goods and followed by Materials (XLB), Real Estate (XLRE), and Financials (XLF).

Of course, on Friday, growth sectors were also higher, and market breadth was decidedly bullish.

Market Breadth	NYSE	NASDAQ
Advancers	2,302	2,994
Decliners	513	1,205
New Highs	205	236
New Lows	17	67
Up Volume	2.35 billion	2.99 billion
Down Volume	427.19 million	1.5 billion

Nice Finish to a Rough Week

An oversold rally saw relief on Friday when there were just specs of red on the heat map.  There continues to be pressure in the oil-related names, as WTI continues to fail to hold above $80.00.

But the big names were crushed during the week.

Biggest Earnings Week

The biggest names are among the 34% of S&P 500 names posting second-quarter financial results this week.

Still About Mag Seven

Even though the rotation trade is supposed to reflect earnings momentum shifting away from Mag Seven stocks, they are still expected to outgrow the rest of this year. This week, we hear from four Mag Seven names: Microsoft - MSFT (Tuesday), Meta - META (Wednesday), Amazon - AMZN, and Apple - AAPL (Thursday).

Interesting Earnings Reactions

This morning, On Semiconductor (ON) posted results that beat the street, and management hiked guidance.

• Revenue $1.74 billion consensus $1.73 billion
• EPS $0.96 consensus $0.92
• 3Q Guidance (sales) $1.7 to $1.8 billion consensus $1.73 billion
• 3Q guidance (eps) $0.91 to $1.03 consensus $0.92

I do not like margins coming down month to month and from a year ago.

McDonald’s (MCD) posted a disappointing number, missing on the top and bottom lines, as comp store sales collapsed, but the stock is indicating to open higher.

Earnings misses have triggered investors to sell, but stocks are higher five days after posting results.

Comments

Friday's Heat Map: Water, water everywhere...and not a drop to drink. Sorta. Mark A Peterson on 7/29/2024 11:17:38 AM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.