Macro View
Daily Insights
- New highs for small caps. The S&P 600 Index closed at a new all-time high yesterday, while the S&P Microcap Indexwas just pennies away. With the S&P 500 Index still 5.2% off its highs, this transition in leadership to small caps may be a positive sign and could bode well for overall equity strength. Elsewhere, we saw various advance/decline lines break out to new highs as well. We continue to be impressed with how broad-based this rally is, and believe the recent performance of small-company indexes increases the likelihood that the lows for the year have been made.
- Seven in a row? The Dow is up six days in a row for the second time this year. It hasn’t made it to seven in a row since last November. Looking back, the last full calendar year to go without a seven-day win streak was 2008, while the last 10 6-day win streaks (all occurred after the U.S. election) saw the Dow up 1.0% on average a month later and higher six out of those 10 times.
- Some good news. The S&P 500 is officially higher (again) year to date, and it’s only May. What does this mean for the rest of the year? We took a look and will provide insights today on the LPL Research blog.
Monitoring the Week Ahead
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Friday
- Import & Export Price Indices (Apr)
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Index data obtained via FactSet
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