Here’s a summary of how the 11 sectors of the S&P 500 fared
SPX:
performed its year and how future price-earnings ratios compare to end-2021 valuation levels;
The communications services sector has been the best performer this year, but technology stocks have really led the way.
Two tech giants — Alphabet
GOOGLE:
and meta platforms
AFTER:
— are in the communications industry, while Amazon.com
AMZN:
is in the consumer discretionary segment, which is also coming back from a dismal 2022 post. Revenues from the end of 2021 are shown for perspective. Meanwhile, forward price-to-earnings ratios based on analysts’ estimates polled by FactSet are significantly lower for most sectors than at the end of 2021. But that’s not to say that stocks are generally priced cheaply. The S&P 500’s current forward P/E is 18.2, compared to a 20-year average of 15.7.
Another tech name that has risen this year is Tesla
TSLA:
,
which is part of the consumer discretionary segment. The stock is up 47 percent in 2023, after falling 65 percent the previous year.
In this week’s ETF Wrap, Christine Idzelis looks at several ways to invest broadly in the electric vehicle space, as well as the semiconductor industry and technology in general.
Here is a fascinating fact from Joseph Adinolfi. Apple is now worth more than the entire Russell 2000 index.
RUTH:
.
Apple’s
AAPL:
the stock has returned 35% this year, while the Russell 2000 is up just 2%.
Technology company news.
More on Tesla, Musk and the EV competition
Tesla held its annual meeting on Tuesday, and there was some (apparently) good news for people who’ve been waiting years for the Cybertruck. Here are four other highlights from Tesla’s annual meeting, courtesy of Claudia Assis.
More.
AI sets the stage for competition
We are at the beginning of a long period of innovation and improved services as a result of the expansion of artificial intelligence. Here’s a broad screen of global stocks highlighting the 20 AI-based companies expected to grow sales the fastest through 2025.
And here’s a look at which of the biggest AI players could win the race, according to analysts at Morgan Stanley.
Is it too late to invest in Warren Buffett’s second favorite country?
Companies in Japan make up more of Berkshire Hathaway’s
BRK.B
The Japanese stock portfolio has rallied more strongly this year than any country except the US. Berkshire CEO Warren Buffett recently visited Japan. Now William Watts is wondering whether or not it’s too late to jump on the Japan bandwagon.
More in the markets.
How about some mild winters for a change?
Jessica Hall writes Where Should I Retire? column. This week he helps a couple who want to become snowmobilers who live in a pleasant climate in the winter but away from big cities while still being close to a major airport. Here are two suggestions from the MarketWatch Retirement Places Tool that you can use to do your own search.
Here’s what happens if you keep working while collecting Social Security
Alessandra Malito writes the Help Me Retire column. This week, he’s helping a reader who can start collecting Social Security while still working. Here’s how his salary and investment income can affect his Social Security payments.
More about retirement planning. “It’s like getting married on the first date.” How can you trust financial planning if you don’t know exactly what you’re paying and what you’re getting?
Retailers are starting to report, and word is… mixed
Main Depot
HD:
has been a consistent performer for many years, showing continued growth in comparable store sales. But now it has changed. the company reported a 4.5% decline in comparable-store sales, its worst performance by this measure since 2009. Here’s what the company expects for its full fiscal year.
target
TGT:
reported an increase in comparable-store sales, but also lowered its revenue guidance, citing “softening sales trends.”
On a more positive note, TJX
TJX:
reported a 3% increase in comparable store sales.
More news about retailers.
US Housing Market Research
Aarti Swaminathan explains why people stay put.
Read: Can California be viable for someone who is single and making $60,000 a year?
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