Friends
Netflix’s earnings after the close yesterday helped fuel a Nasdaq rally at the open, but as the trading session wore on things moderated some but still had an upward tilt. Once again, as we have seen in years past, we are seeing a separation of big growth names from the rest of the market. Coming into the year, the narrative was the big cap growth names were fully priced and a widening out was in the cards. Instead, the big growth names continue to push higher while the rest of the market flounders. The S&P 500 as measured by the SPY ETF is up over 2% for the year while the RSP or equal weighted S&P 500 ETF is actually down over 1%. We’ve seen this movie before. It will be really interesting to see how all these big names respond to earnings. As we mentioned, Netflix was great. We get Tesla after the close today, and others like Apple, Microsoft, Google, and Facebook (Meta) all next week. Are they priced for perfection? We will see.
As for today, by the close the Dow Jones Industrial Average was down 99 points to finish the day at 37,806. The S&P 500 was up 3 points to close at 4,868. The Nasdaq Composite Index was up 55 points to close at 15,481. Gold was down $12 to trade at $2,013 per ounce, while oil was up $.92 to trade at $75.29 per barrel WTI.
As expected, we are seeing a wide array of responses to earnings so far this season. Given the rally at year end leading into this current earning’s season it is not a surprise that there would be some volatility right now. But so far, the big growth names are holding the market averages together. Let’s see if that continues. Stay tuned.
Have a nice evening everyone.
