As we move through the 2nd quarter earnings reporting season, there isn’t anything really dramatic to report. The earnings seem to be supporting the individual stock prices. 

Buying momentum among a number of the forefront technology leaders was evident in last Thursday’s session with high-volume selloffs pretty much across the board. 

The DJIA has severely lagged behind the S&P 500 and Nasdaq year to date. The Dow is up by a little more than 6%, while the S&P 500 is up ~18% and the Nasdaq ~34%. 

Gene Peroni’s Daily Podcast: Rotation is an important element for a healthy market environment and it’s an important characteristic in a sustainable market advance. 

You don’t have to be a contrarian to recognize that there are other stock sectors and themes that are doing quite well beyond the “Magnificent 7” technology names that have been mathematically driving the S&P 500 higher. 

I mentioned last Friday that the major market indices were approaching targets that I thought might not be seen until later this year. For instance… 

Some years ago it was Alcoa that officially launched the earnings reporting season, but today it’s the financials and this morning several financials are reporting and beating Wall Street expectations. 

There was encouraging news on the inflation front, but no real tendency to sell into the good news. 

The fact that just a handful of companies are driving the performance of the S&P 500 year to date makes for good academic fodder and is mathematically correct, but otherwise I think…

The market is in a limbo stage as we await the 2nd quarter earnings reporting season. This often happens where we do get some consolidation, rotation and hesitation ahead of the earnings reporting season.