What happened last week…
The S&P 500 landed in positive territory for eight of the past nine weeks while NASDAQ ended the week flat and has only had one negative week in the past nine weeks. Meanwhile, the DJIA rebounded with a positive week. Weekly performances were as follows: DJIA (1.45%), S&P 500 (0.61%), NASDAQ (0.00%). Heading into the final week of trading, each index remains positive for the month of June—DJIA (1.20%), S&P 500 (3.55%), NASDAQ (5.70%)—which for all three indices would mark back-to-back monthly gains and gains in seven of the previous eight months.
According to CNBC, with data compiled by FactSet, the S&P 500 has gone 377 days without a 2.05% decline, making it the longest such streak for the index since the great financial crisis. So far, the year-to-date performance of the S&P 500 has seen the index gain 14.57%. Meanwhile, the DJIA and NASDAQ have gained 3.88% and 17.84%, respectively.
According to FactSet, as of June 21, for Q2 2024, the estimated earnings growth rate for the S&P 500 is 8.8%, which would be the highest year-over-year growth since Q1 2022 (9.4%). The estimated revenue growth rate for the index is forecasted to be 4.6%, which would be the 15th consecutive quarter of growth. Forecasts for the remainder of the year are as follows: for Q3 2024, expectations for earnings growth of 8.2% and revenue growth of 4.9%; for Q4 2024, expectations for earnings growth of 17.6% and revenue growth of 5.5%; for CY 2024, expectations for earnings growth of 11.3% and revenue growth of 5.0%.
On Tuesday, Nvidia (NVDA) became the world’s largest company by market capitalization at $3.34 trillion, surpassing Microsoft (MSFT) and Apple (AAPL) in the process. The company’s rise to the top has been generated by the demand for artificial intelligence chips, of which Nvidia has about an 80% market share, according to CNBC.
Existing home sales for May beat expectations (4.10 million) but decreased to 4.11 million from 4.14 million, which is the lowest reading in four months.
This week…
On Wednesday, new home sales for May are expected to increase to 650,000 from 634,000. The metric has landed below 700,000 since last July.
On Thursday, the GDP growth rate (final estimate) for Q1 2024 is expected to match the prior estimate of 1.3%, which was a decrease from the Q4 2023 reading of 3.4%. The 1.3% rate is the lowest growth since the contractions seen during the Covid pandemic.
Thanks for Reading!
- The Rockline Team
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