Leadership A Changin’
Stocks appear to be shrugging off the reversal I wrote about last week, pretty much as expected. There is a lot of the news docket this week with the Fed meeting on Tuesday and Wednesday as well as the summit in Singapore with North Korea. While the latter will be all the focus, the former has a much better chance of moving the markets. You should expect another special Fed edition shortly.
Over the past week or so, index leadership in the stock market has been showing signs of changing. While the Dow has been lagging for most of the year, it is perking up in the short-term and it is now rated number one against the S&P 500, S&P 400, Russell 200 and NASDAQ 100. After that, the S&P 500 and S&P 400 are essentially tied with Russell 2000 and NASDAQ 100 bringing up the rear. This probably comes as a surprise since the last two ranked indices have been leading the rally and the Dow has performed the worst.
Getting a little more granular, value stocks seem to be finally attracting some interest over growth. It’s been a long, long time with large cap looking slightly better than mid cap. Could the FAANGs be losing a little luster?!?!