1. Rare Occurrence-Chart Kid Matt
But today there’s one stat that I feel is worth sharing with you all.
And here it is:
As of 2:45 PM EST, the S&P 500 is down 2.1% but 51% of stocks are ADVANCING on the day.
Here’s the scatter. Feast your eyes.
This is extremely rare and it’s only happened two other times: 4/19/1999 and 4/12/2000.
Am I saying this time is like that time?
No. This is data, I’m just the messenger.
But wow, things are feeling wild out there.
There’s so much data worth painting and I’m over the moon.
To another week with data worth painting, I hope you all have an amazing weekend. I will talk to you soon.
2. Mondays After Big Friday Selloffs in Nasdaq
OddStats
3. Operating Margins and Profit Margins S&P
Chartr Much of it comes down to the index’s new center of gravity: a handful of unusually profitable tech giants. The Magnificent 7 alone account for more than a third of the S&P 500’s total market value, and they’re punching far above their weight, posting 63.2% earnings growth in Q1, which is nearly 4x the rate of the other 493 companies.
Chartr
Bloomberg data through Thursday shows the trend still holding, with both operating and net profit margins at their highest in at least two decades. This means that companies are making more from their core businesses, as well as keeping more for shareholders after costs, interest, and taxes are paid.
4. But….Revenue Per Employee Falling for Small Cap Companies….Margins Flat for S&P 493
Apollo
5. Goldman Sachs Non-Profit Tech Index Down Double S&P Friday
6. AI Demand ..What Inning?
AI demand. “AI demand indicators remain bullish across the board. Overall, token expenditure looks robust, while the memory chip shortage continues to boost memory chip prices. Meanwhile, Nvidia data centre revenue shows no sign of slowing down, while overall AI adoption remains low”.
DAILY CHARTBOOK
7. Tesla Retail Investors 42% of Float…Space X Wants Same Model
Financial Times
8. When speculative small stocks win big, often it’s because investors aren’t thinking straight…Penny Stocks Outperforming
WSJ James Mackintosh Speculation is most obvious in the tiniest companies. Penny stocks, usually defined as those that trade for less than $5 a share, are often opaque and get zero attention from Wall Street analysts. When they go up this quickly, it’s often more about a frenzy among investors than underlying economic fundamentals.
Since March 30, penny stocks have risen 28% on average, well above the 22% of non-penny stocks in the Microcap index—and beat the Mag 7 of Amazon, Alphabet, Apple, Meta, Microsoft, Nvidia and Tesla. Unlike the Mag 7, the tiniest companies were slightly up in the first quarter, too.
Gambling in penny shares adds to a sense of wild speculation more widely in stocks. Just look at the demand for AI-linked stocks: Three loss-making IPOs are about to be among the most-valuable listed companies. Investors are cheering on capital spending so big that it moves the economy without knowing quite how it will make money. And companies have quintupled or more their value simply by announcing they are pivoting their business.
9. AI Driven Electricity Price Growth
10. Talent is Earned in “Dark Hours”
through the dark hours.
I call them “dark hours” because no one sees them. You don’t have a boss, you don’t have a clock, other people are off doing their thing, and it’s just you and the work. You play, experiment, and learn one dark hour at a time.
What looks like skill is mostly just a lot of work in the dark.