Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:05 p.m. (1:05 p.m.) on the radio and later on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube. Earlier charts are on my Substack page. Thanks for your interest. It’s appreciated.
U.S. stocks may only go as far as the outlook for earnings takes them, if the Russell 2000 and S&P 500 indexes are any guide. During the past six months, the small-cap gauge climbed as much as 60%. Projected 12-month earnings per share for the index increased by the same percentage, according to data compiled by Bloomberg. The S&P 500 rose no more than 20% in the six-month period as forward EPS went up 15%. Similar comparisons prompted Mike Wilson, chief U.S. equity strategist at Morgan Stanley, to cut his rating on small-cap shares this week.
David Wilson Stocks Editor, Bloomberg RadioEditor, Chart and Stock of the DayStock of the Hour, Bloomberg Television Author, Visual Guide to Financial Markets