MegaCap-8

Market Call: Blue Angels Flying High

Jun 9, 2024 2 min read paid

Our Blue Angels framework shows that the S&P 500 was back in record high territory last week as S&P 500 forward earnings rose to yet another record high (chart). Meanwhile, the S&P 500's forward P/E has been relatively steady just above 20.0 in recent weeks. The S&P 500's forward P/E with and without the MegaCap-8

Ed Yardeni

Two of the Magnificent 7 Get Shanghaied

Mar 5, 2024 2 min read paid

Two of the Magnificent-7 are less magnificent. That's because China is in a recession and Chinese consumers are buying fewer of Apple's iPhones and Tesla's EVs. These two companies are also facing more competition from Chinese producers of similar consumer goods. So, they are down 11.6% and 27.3% ytd. Also down by 5.0% ytd is Alphabet, which is deemed to be

Ed Yardeni

China: Pushing On A String?

Mar 4, 2024 2 min read paid

In recent weeks, the Chinese government has introduced several measures to prop up the stock market. This week, the government was expected to announce measures aimed at boosting the economy. In a surprise announcement today, a spokesman said China’s Premier Li Qiang will not brief the media at the close of this year’s annual parliamentary meeting, which begins on Tuesday in Beijing. The government may be concerned that

Ed Yardeni

Market Call: Investing Is For Teenagers

Feb 18, 2024 2 min read

Contrary indicator alert! On Sunday, the WSJ posted an article titled "These Teenagers Know More About Investing Than You Do: Custodial investment accounts for minors have surged in popularity." According to the article, the kids are all buying technology stocks: "Brokerage executives say that technology behemoths that are ubiquitous in the lives of teens are often some of the most widely held shares." You have been

Ed Yardeni

MegaCap-8 Continue To Impress

Feb 6, 2024 2 min read

Through Friday’s close, the S&P 500 price index is up 4.0% ytd to a record high. The MegaCap-8 collectively has outperformed with a gain of 7.6%, also a record high (chart). Without the MegaCap-8 stocks, the S&P 500 would be up 2.5% ytd. The MegaCap-8 now accounts for a record-high 28.3% of the S&P 500’s market capitalization (chart)

Ed Yardeni

Bad Apple?

Jan 3, 2024 2 min read paid

The MegaCap-8 stocks led the S&P 500 down during the first two days of trading in 2024 (chart). The moves came after Barclays downgraded Apple on Tuesday and lowered its price target for shares of the company on fears of slowing iPhone 15 sales in China. We warned you about companies with exposure to the weak Chinese economy on December 26 in our QT titled "Prepare For

Ed Yardeni

Both Analysts & Investors Are Optimistic

Jul 5, 2023 2 min read paid

In the stock market equation P = P/E x E, the consensus expected forward earnings of industry analysts determines earnings (E), while investors determine the forward earnings multiple (P/E) that they are willing to pay for E. Industry analysts remain optimistic on S&P 500 forward revenues which rose to another record high during the June 29 week (chart). They've also stopped lowering their consensus expectations

Ed Yardeni

MegaCap-8 Stocks Are Outperforming Again

Mar 19, 2023 1 min read paid

The MegaCap-8 stocks seem to do well during pandemics. They did so in 2020 during the Covid lockdowns. They may be doing so again during the banking crisis. Their collective market-cap share has jumped from 19.0% a few weeks ago to 23.5% on Friday (chart).

Ed Yardeni

Listening To The Markets

Feb 18, 2023 2 min read paid

On a regular basis, we all need to listen to the markets. They process a tremendous amount of information. They reflect the opinions of lots of buyers and sellers. Their price action can tell us a great deal about the economy, financial conditions, and sentiment. Joe Feshbach helps us to do just that based on his 40+ years trading the financial markets. He had expected that the S&P

Ed Yardeni

Bears Are Having A Field Day, Again

Dec 18, 2022 2 min read

Increasing market concern about a recession next year and triple-witching on Friday caused the S&P 500 to close out the week at 3852.36, its lowest level since November 9. It’s down 5.6% so far in December from its recent high of 4080.11 on November 30, but is still up 7.7% from its October 12 low of 3577.03. The index has made three

Ed Yardeni

MegaCap-8 and a Trading Call Update

Oct 24, 2022 1 min read Featured

The MegaCap-8 are still the largest yachts in the ocean. These eight stocks currently account for 23% of the market capitalization of the S&P 500 index and 46% of the S&P 500 Growth index (chart). This week, five of them--Microsoft, Alphabet, Meta, Apple, and Amazon--are set to report their earnings. (The other three are Netflix, Nvidia, and Tesla.) Their managements will provide insights into how the

Ed Yardeni

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