US equity futures are slightly higher this morning as the markets try to recover from yesterday’s post-FOMC swoon, but things are really likely to quiet down shortly after the open this morning when the Kavanaugh hearing kicks off at 10 AM.
While the broader market continues to trade right near all-time highs, a number of key areas of the market are not only missing out of the party, but they’re at 52-week lows. Exhibit A is the homebuilders (chart below), but along with them, stocks like Whirlpool (WHR), and Bed, Bath, and Beyond (BBY) are also at multi-year lows, while the two ‘generals’ of General Electric (GE) and General Motors (GM) are acting more like ‘privates’.
It’s still earnings off-season, but from the few reports we have seen so far, companies aren’t exactly wowing investors. We first highlighted this in last week’s Bespoke Report, but this week we are seeing the trend continue a bit as just over half of companies reporting managed to exceed their revenue forecasts. Once earnings season comes, they are going to have to do better than that!
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