Question of the Week

Since NYC mayor Mamdani hugged the NY Mets mascot, the team is 0-11 - what will happen first?

The Strait of Hormuz permanently reopens.
The Mets win another game.

It's been a rebound for the ages, as the “Magnificent Seven” ride again, according to Bloomberg. Nvidia (NVDA), Alphabet (GOOGL), Broadcom (AVGO), Amazon (AMZN), Microsoft (MSFT), Apple (AAPL), and Meta Platforms (META) accounted for 60% of the gain off the March bottom. 

Last week, mega-cap names continued to produce monster gains, with Oracle (ORCL) at the top of the list, joined by AppLovin (APP), Tesla (TSLA), and Palantir Technologies (PLTR).

On Friday, every niche of the market was invited to the party.

Energy’s (XLE) decline benefited Consumer Discretionary (XLY) names and Industrials (XLI), which moved ahead of Technology (XLK), which continues at its blistering pace.

Lower yields also put a bid into Real Estate (XLRE) and housing-related stocks.

The Dow Jones Transportation Index (TRAN) soared in a way I can hardly recall ever seeing before.  Some of the moves reflect the huge short squeeze in Avis Budget Group (CAR), but for the most part, this move suggests the economy is ready to move to a higher level.

Ain’t No Party Like a V-Shaped Party

V-shaped rebounds provide the kind of thrust that sees much higher gains over the next twelve months.

Earnings Season

It has been a remarkable earnings season thus far. This week sees more reports from a wider variety of sectors.

Thus, 84% of S&P 500 (SPX) companies have beaten revenue estimates to date for the first quarter of 2026 (Q126), above the 5-year average of 70%, and the 10-year average of 67%. This is the “Mother's Milk” of rallies.

Today’s Session

Once again, we start a new week with the media feigning confusion over what’s happening in the Iran Conflict.

The United States isn’t playing around, and while there is an internal power play inside Iran, whoever ends up in charge will come to the table, and a deal will be made.

Everyone hopes it's sooner rather than later.  Meanwhile, algorithms playing off headlines see major indices under some pressure and crude higher.

On that note, West Texas Intermediate has been making a series of lower highs and lows since April 7^th.

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