7.22.24: Value Stocks Beating Growth By Most Since 2001.

For Public Readers: Weekly Key U.S. and China brief market notes by Larry Cheung's Analyst Staff Team for our Public Email List

Jul 23, 2024

**Earn 4.8% on Idle Cash:** Larry uses Interactive Brokers as his core brokerage to trade Direct Shares, Options, and at very select times, Futures. All idle cash yields now yield 4.8% (just increased due to Fed Hikes)! Check out IB by pressing the image above. Few other brokerages have this feature. IB also allows Traders to earn interest on cash when Selling Options and offers HK-Listed Trading

Make sure to check out Interactive Brokers above as idle cash now will yield more than 4.5% as the Fed just raised rates.

Key Investing Resource: Strategist Larry uses Interactive Brokers as his core brokerage. Feel free to check out IB. I currently park excess cash at Interactive Brokers. Check it out. It’s a great brokerage.

In our emails, we will provide the following coverage points:

Brief Overview of U.S. & China Markets
Macro Chart in Focus
U.S. & China Upcoming Economic Calendar
Chart That Caught Our Eye

U.S and China Markets Brief Snapshot 🇺🇸 🇨🇳

(Powered by our Channel Financial Data Provider YCharts)

S&P 500 Index: 5,564.41

KWEB (Chinese Internet) ETF: $27.58

Analyst Team Note:
With 20% of the S&P 500 index earnings reported, companies are beating consensus EPS estimates by 5% in aggregate, driven primarily by the financial sector.
The beat rate is encouraging, with 73% of companies surpassing EPS expectations, 59% beating on sales, and 51% exceeding both metrics - all improvements from the previous quarter.
Reported sales are also beating estimates by 2% overall.
While there are some positive trends, including stable consumer behavior, moderating de-stocking, strong AI chip demand, and increased capital markets activity, corporate sentiment has slightly declined compared to Q1.

Macro Chart In Focus

Analyst Team Note:
The stock market has experienced a sudden shift in recent days, with previously lagging sectors like small-cap stocks and value stocks outperforming the dominant "Magnificent Seven" tech stocks.
The Russell 2000 index of smaller stocks has significantly outpaced the S&P 500, while value stocks have shown their strongest performance relative to growth stocks since 2001.

Upcoming Economic Calendar

(Powered by our Channel Financial Data Provider YCharts)

U.S Economic Calendar (Upcoming Data Points)

China Economic Calendar (Upcoming Data Points)

Analyst Team Note:
June's retail sales data exceeded expectations, demonstrating resilience in consumer spending despite some sector-specific declines. While headline retail sales remained flat month-over-month, this was primarily due to decreases in gasoline and automobile sales.
Core retail sales, which exclude autos, rose by 0.4% month-over-month, while the control group - a key measure that feeds into GDP calculations - surged by 0.9%.

Chart That Caught Our Eye

Analyst Team Note:
According to new research from Vanguard Group, many workers are inadvertently missing out on significant investment gains by leaving their retirement savings in cash after rolling over 401(k) balances into Individual Retirement Accounts (IRAs).
Nearly a third of those who rolled savings into IRAs at Vanguard in 2015 still had their balance sitting in cash seven years later. This mistake is costing Americans an estimated $172 billion annually in potential retirement wealth.