The October ’22 highs for the had been 4.22% – 4.25% these are closing highs. There’s a 4.33% tick that is likely to be a futures tick (after hours or pre-market buying and selling) that’s additionally displaying up, with the purpose being that readers needs to be watching these technical ranges for a breakout within the 10-year Treasury yield. The final time the 10-year Treasury yield was round 3.40% – 3.50% – earlier than transferring a lot decrease – was December ’07.

Knowledge supply: IBES information by Refinitiv

The above spreadsheet reveals the “rate-of-change” of the ahead EPS curve.

Observe the underside, black-bordered space, or the 12-week fee of change.

It’s improved materially for the reason that finish of March ’23.

S&P 500 Knowledge:

• The ahead 4-quarter estimate (FFQE) for the SP 500 elevated this week to $231.67 versus final week’s $230.84, and the early January ’23 print of  $228.38;
• The PE ratio on the estimate is nineteen.3x versus final week’s 19.4x;
• The SP 500 earnings yield elevated to five.19% versus final week’s 5.15%;
• The Q2 ’23 bottom-up estimate improved to $54.09 from final week’s $53.26;

Anticipated Sector Progress Charges:

Knowledge supply: IBES information by Refinitiv

Once more, the black-bordered areas present the advance in SP 500 earnings coming from two sectors: shopper discretionary and communication providers. Regardless of know-how’s outperformance this yr, the sector reveals little enchancment in 2023 earnings, and whereas 2024 is on the lookout for higher EPS progress for tech, the speed of change is minimal.

S&P 500 Ahead Estimates Are Shifting Increased:

Observe the gradual will increase in 2024 and 2025 SP 500 EPS estimates.

The traditional sample is often gradual erosion.

Abstract / Conclusion:

America’s largest retailer experiences this week – Walmart (NYSE:) – and readers additionally get a take a look at retail gross sales, too.

Progress shares look to have a moist blanket thrown on high of them because of worries over greater rates of interest, however the reality is know-how sector earnings look unremarkable at finest. Tech sector’s PE enlargement is all in regards to the AI pleasure, and it’s a must to assume that has a number of years to play out but. I nonetheless should learn the convention name notes from the mage-caps and the tech sector earnings, however has one firm quantified what AI would possibly imply to both productiveness financial savings or EPS good points.

Take all this with substantial skepticism and a substantial grain of salt. Previous efficiency is not any assure or predictor of future outcomes. All SP 500 earnings information sourced inside is from IBES information by Refinitiv. None of this info could also be up to date and whether it is up to date, will not be executed in a well timed style.