Stock Market Internals Earnings Momentum, Small/Mid/Large Caps, Growth/Value/Cyclicals, and Additional Factors
Earnings Momentum
The second month of Q4 earnings came in with an Up/Down Ratio of 1.54, just above the historical “two month” average of 1.53.
S&P 500: Equal Weighted Index Continues To Excel
As the market rallied in February, the S&P 500 Equal Weighted Index (+5.2%) handily outperformed the Cap Weighted S&P 500 Index (+4.3%).
Growth/Value/Cyclicals
Growth Outperforms Value In February.
Small/Mid/Large Caps
Small Caps are selling at a 20% valuation premium relative to Large Caps (23% last month), using non-normalized trailing operating earnings.
Sector Weightings Adjust To Reflect January Loss Leaders
Consumer Discretionary sector weightings sank among all three market tiers, as this segment led the market lower in January. Health Care and Utilities sector weightings increased, as both outperformed for the month.
S&P 500: Equal Weighted Index Slightly Better in January
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The Equal Weighted Index has outperformed the Cap Weighted Index in seven of the last nine months.
Growth/Value/Cyclicals
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Small Cap Growth Outperforms (On Relative Basis) In Down Month
Small/Mid/Large Caps
Small Cap Premium Continues Upward To 23%. Large Caps Lead On The Downside In January
Earnings Momentum
Up/Down Earnings: Q4 Results Just Below Historical Average. Median Q4 YOY Revenue Comparisons: Strength In Large Caps. Q4 Median Company Earnings Growth: Initial Results Are Impressive
S&P 500: Equal Weighted Index Better in 2013
For 2013, the Equal Weighted Index bested the Cap Weighted Index by 4%. The Equal Weighted Index has outperformed the Cap Weighted Index in four of the past five years.
Growth/Value/Cyclicals
Growth Stocks Best In All Three Cap Categories.
Small/Mid/Large Caps
Small Cap Premium Continues Upward To 21%. The red-hot equity market of 2013 was especially good for Small Caps with a +38.8% total return.
Earnings Momentum
Up/Down Earnings: Q3 Ends Below Average. Median Q3 YOY Revenue Comparisons: Small And Mid Caps Continue Leading. Q3 Median Company Earnings Growth: Mid Caps Continue Leading
Dissecting The Capital Tier Indices
Sector weight changes during November were minimal.
S&P 500: Cap Weighted Outperforms For The Second Month In A Row
During November the Cap Weighted S&P 500 (+2.8%) outperformed the S&P 500 Equal Weighted (+2.1%) for a second consecutive month.
Growth/Value/Cyclicals Market Internals
Growth Stocks Lead YTD In All Three Cap Categories.
Small/Mid/Large Cap Internals
Small Caps are selling at a 20% valuation premium relative to Large Caps, using non-normalized trailing operating earnings.
Earning Momentum
While the current ratio of 1.37 is relatively weak historically, it is still an improvement from the second months’ readings of Q2 (1.27) and Q1 (1.16).
Up/Down Earnings: Q3 First Month Results Close To Historical Average
The first month of Q3 earnings came in with an Up/Down reading of 1.73, just below the historical average of 1.81 but ahead of the first months’ readings for Q2 (1.59) and Q1 (1.38).
Small Cap Premium Ticks Up To 16%
Small Caps are selling at a 16% valuation premium relative to Large Caps, using non-normalized trailing operating earnings. Using estimated operating earnings, Small Caps are selling at a higher valuation premium of 23% (25% last month).
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