Economic Data and Market Highlights
The S&P 500 was essentially flat for the week, down 8 basis points. Sector performance was mixed as energy, communication services, and financials gained, offsetting losses in tech, utilities, and consumer staples. According to data published by Factset in the Wall Street Journal, the S&P 500 has surpassed a record price-to-sales metric not seen since late 2000. On a forward P/E basis, the index trades at 22/5 times earnings, above the long-term average of 16.8 (since 2000). The high valuation is in large part due to the top 10 names, which represent almost 40% of the market cap, the most concentrated ever, as noted by Morningstar.
In a 7-4 decision late Friday, a federal appeals court ruled that the Trump global tariffs were issued illegally, but the case will proceed, and the courts allowed them to stay in place while it does.
The Past Week’s Notable US data points (with revisions)
The Upcoming Week’s notable US data points
Source: Morningstar
Data Source: Jim Bianco Research, Charles Schwab and Co, Financial News London, Financial Times, Kobelessi Letter Morningstar, MarketWatch, Standard & Poor’s, and the Wall Street Journal.
Authors:
Jon Chesshire
Michael McNamara