Hope you are all doing well. The S&P 500 and the NASDAQ nudged their record levels higher again, posting fractional gains and recording their eighth positive week out of the past nine. The Dow climbed more than 1% but remained more than 2% below its record high set a month earlier. Willie Mays passed away this week. I have broken down this week’s update using some of his more remarkable accomplishments.
Only player to hit both 50 home runs and 20 triples in a season.
While most of the sectors of the S&P have been legging out singles, two sectors have been hitting home runs and triples. Approaching the midpoint of 2024, the U.S. stock market’s top-performing sectors are the same pair that led the market in 2023. As of Friday, information technology led year to date with a nearly 29% average return followed by communication services with 25%. In full-year 2023, information technology’s average return was about 58% and communication services posted 56%.
Eighteen time All-Star (All-Star starter 14 straight times)
Data released week showed a 14th straight quarter with over 100 billion dollars of share buybacks by S&P 500 Companies. Buybacks are a signal of strength, as excess cash is a sign of confidence. When companies buy back stock, they demonstrate to investors that they have additional cash on hand. The point being if a company has enough excess cash to buy back shares, then investors do not need to worry about cash flow problems. U.S. companies spent more than 8% more to buy back their shares in this year’s first quarter compared with last year’s fourth quarter. Share repurchases by companies in the S&P 500 climbed to nearly $237 billion, according to S&P Dow Jones Indices. Compared with the same quarter a year ago, buybacks were up nearly 10%.
Twelve time Gold Glove winner
The U.S consumer is starting to be a bit more defensive, and that’s not a bad thing.. The highlight of the economic calendar last week was the release of retail sales for May. Sales growth continues to be positive but slower. Consumers are exercising more caution amid tighter budgets. The important takeaway is consumption growth is slowing because of high borrowing costs and high prices. However, I am not concerned because it is normal for consumers to do some belt tightening after a period of splurging.
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