Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
The bleak performance of consumer stocks on US stock market this week has raised concerns about the financial situation of American households.
Before the official start of the second quarter earnings season next month, the bleak performance of consumer stocks on US stock market this week has raised concerns about the financial situation of American households.
Due to the unexpected performance and lowered total annual earnings guidance$Nike (NKE.US)$The stock plummeted by 20% on Friday, marking the largest single-day decline in history. The stock price drop caused Nike's market cap to evaporate about $28 billion, with the year-to-date decline widening to 30%. At least seven Wall Street analysts have downgraded Nike's rating after the results.
"This athletic-footwear company's results are just the latest gloomy consumer datapoint over the past 36 hours," said Adam Crisafulli, founder of brokerage firm Vital Knowledge.$Walgreens Boots Alliance (WBA.US)$, $Levi Strauss & Co. (LEVI.US)$The latest data from Europe's Hennes & Mauritz AB and L'Oréal also send warning signals to consumer elasticity.$Pool Corp (POOL.US)$ and $General Mills (GIS.US)$Reports earlier this week also portrayed a scenario of pressure on families.
Crisafulli said, "Clearly consumers are facing more headwinds."
Despite sustained inflation and high borrowing costs, the primary engine of the US economy - consumer spending - remains essentially stable, but cracks are starting to appear. Wall Street will begin analyzing the performance of US companies from mid-July to look for further evidence of consumer anxiety, which may shake investor enthusiasm that has driven the record highs this year.$S&P 500 Index (.SPX.US)$
Jay Woods, Chief Global Strategist at Freedom Capital Markets, said: "Brands that don't stand out are definitely struggling. Now our consumers are very picky, and as an investor, you have to pay attention to these trends. "
What is certain is that companies like Nike are struggling to address their own unique challenges. As competition intensifies, the world's largest sportswear company is transforming its product line to reignite consumer interest.
Nike's disappointing annual guidance highlights the company's 'energizing' approach in the face of weak key franchise businesses, increased macroeconomic uncertainty, and continuing 'uneven consumption trends' in Europe, the Middle East and Africa, and other markets. Management also said forex headwinds were putting pressure on prospects.
Stifel analyst Jim Duffy said: "Consumers are looking for new and inspiring things, but they won't shop just to shop." "The brands that achieve this goal are successful, but this is not an environment where all boats are rising. Nike is a good example."
Editor / jayden