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The Great Value Rotation in the Stock Market Could Be Over Already as Investors Embrace Tech Again

Companies bottom lines are getting a boost from the reopening, but stocks don t seem to care

Companies’ bottom lines are getting a boost from the reopening, but stocks don’t seem to care CNBC 5 hrs ago The reopening story is now getting very real, at least for Wall Street. The latest earnings reports are chock-full of companies reporting earnings above expectations, and most importantly, raising guidance. Take steel maker Nucor, which reported what CEO Leon Topalian called the most profitable quarter in our Company s history on improved pricing and margins. We expect earnings for the second quarter of 2021 to exceed our first quarter results, setting a new record for quarterly earnings. Most of the end-use markets we serve remain strong and inventories remain lean across supply chains. We believe the current favorable demand environment will continue through the rest of 2021, he wrote to investors.

Stocks Are Booming Higher, But Traders Are Having a Harder Time Making Money

Of course, the market hit new highs in January and February, but this, time it s different. Previous new highs in January and February were greeted with some hand-wringing: it was mostly big-cap tech stocks that were forcing the markets higher. Not this time. The rally has broadened out, big-time. Far more stocks are advancing than declining. Nearly one-fourth of the stocks in the S&P 500 and the NYSE Composite Index are at new highs. Recently, laggard groups like utilities, health care, and REITs have been outperforming prior leaders like technology and industrials. Value is at a new high. Growth is at a new high. Big caps are at new highs, midcaps are at new highs. The small-cap Russell 2000 is lagging slightly, 4% off its high, but no one seems to be complaining too much.

As Earnings Season Kicks Off, Investors Hope for Optimistic Forecasts to Justify Record Stock Prices

As Earnings Season Kicks Off, Investors Hope for Optimistic Forecasts to Justify Record Stock Prices
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