AJ

[Mike Zaccardi, CFA, CMT 🍖 @MikeZaccardi]

Earnings growth has been intense this year, but there's also a surprising amount of P/E de-rating going on under the hood. From Wei Le at BlackRock

[Josh Schafer @_JoshSchafer]

Truist's Keith Lerner took a look at 30 major IPOs. The Year 1 max drawdown column stands out.

[(((The Daily Shot))) @SoberLook]

Despite the strong print, the gap between PMI and the ratio of cyclical versus defensive equities remains large.

[The Kobeissi Letter @KobeissiLetter]

US equity market ownership has undergone a historic shift:

Foreign investors now own a record $20 trillion, or ~19% of all US equities.

This percentage has nearly TRIPLED since 2000.

Furthermore, passive mutual funds and ETFs hold $17 trillion, an all-time high, accounting for ~15% of all US equity ownership.

Since the 2008 Financial Crisis, passive fund ownership has TRIPLED.

Over the same period, the weight of active mutual funds has more than HALVED to $11 trillion, now at ~10% of total, the lowest since the early 1990s.

Foreign investors and passive funds are a key source of demand for US stocks.

[Jeff Weniger @JeffWeniger]

Not one, not two, but three S&P 500 sectors are testing either Dot-Com or GFC extremes. Relative to the rest of the market, Healthcare is back to March 2000 specifically. Consumer Staples = Dec. 1999. The S&P 500 Financials sector just broke March 6, 2009.

[zerohedge @zerohedge]

Token prices

[Ryan Detrick, CMT @RyanDetrick]

This is turning into a record no one reading this will ever see broken in their lifetime.

Stocks have gained a record first 7 days in a row since Warsh was confirmed. The previous record was Miller with 5.

[Eric Wallerstein @ericwallerstein]

manufacturing acceleration + credit impulse was easy to see if you followed the policies.

[Mike Zaccardi, CFA, CMT 🍖 @MikeZaccardi]

GS: We expect Core CPI Inflation to stand at 2.5% by the end of 2026 and 2.1% by the end of 2027

[Lance Roberts @LanceRoberts]

So far, the market has delivered its strongest start to a midterm-year second quarter since 1950, despite entering what is typically one of the weakest periods of the presidential cycle.

[Lance Roberts @LanceRoberts]

U.S. manufacturing continued to gain traction in May, with the ISM Manufacturing Index rising to 54, above expectations of 53.1, and marking a fifth straight month of expansion. Momentum across the industrial sector is firming as AI construction and CapEx flows through to economic activity.
The chart shows the correlation between the U.S. ISM Manufacturing Index and the S&P 500 index year-over-year percent change, since 2011.
@ISABELNET_SA

[Mike Zaccardi, CFA, CMT 🍖 @MikeZaccardi]

GS: Our Oil Strategists Expect Brent Oil Prices to Fall to $90 by 2026Q4, but See Two-Sided Risks to Prices Going Forward

[Rand Group @randgroup]

The S&P 500 is at 7,600 in early June. Half of Wall Street's year end targets are already hit.

[Mike Zaccardi, CFA, CMT 🍖 @MikeZaccardi]

The richest 10% are spending like never before... bottom 80% are also spending like never before @soberlook @steverattner

[David Marlin @Marlin_Capital]

This isn’t 1999.

It’s not even 2021 yet.

The $NDX trades at ~24.7x forward earnings, right at its 5-year average.

[Phil Rosen @philrosenn]

The S&P 500 is up 112% since the current bull market started October 2022.

Bull markets see 192% returns on average dating back to 1949.

History says there is plenty of upside ahead.

[Bob Elliott @BobEUnlimited]

For all the talk of data centers driving growth, that construction has added a mere 3-4bps of GDP growth on average over the last few years.

[Mike Zaccardi, CFA, CMT 🍖 @MikeZaccardi]

EM trades just 12x earnings... but are we near peak earnings? GS