Apple (NASDAQ:AAPL) does not report until Thursday, November 1, 2018, but the smartphone giant is the big dog in the Technology sector after the creation of the Communications sector.
Per David Aurelio of Refinitiv IBES, Apple’s EPS weight within the Tech sector is now 19.7%. while Apple’s revenue weight is 20%. Remember too kids, that even with the creation of the Communications sector, there are still 65 other Technology companies that make up the sector.
Think about that for a minute.
Weekly S&P 500 earnings update:
- Fwd 4-Q est: $173.49 vs $173.57 as of last week
- PE ratio: 15.9x
- PEG ratio: 0.71x
- S&P 500 earnings yield: 6.27% vs last week’s 6.27%
- Year-over-year growth of the fwd estimate: +21.96% vs last week’s +22.32%
Summary / conclusion: The S&P 500 closed with almost the EXACT same value on Friday, October 19th as it did on Friday, October 12th, which was 2,767, and the difference being less than one full point. I wonder what the odds of that might be?
Here’s the point though: The S&P 500 “earnings yield” as we referenced here last week finished the week at the same level, while the 10-year Treasury yield came in a smidge on the week.
Despite the volatility, if you fell asleep all week, nothing really happened Friday to Friday.
The $50,000 question: Has the S&P 500 bottomed?
- The VIX peaked at 22-23 during the 4% downdraft the week of October 12th and ended this week at 19.89 despite the S&P 500 closing at its same level.
- Also, taken from a Helene Meisler post, over at TheStreet’s RealMoney column, Helene noted that with Thursday’s October 18th ugly action, the S&P 500 saw 245 stocks make new lows, versus the prior Thursday’s 526 new lows, so despite the ugly action, the number of stocks making new lows was more than cut in half. (Helene is a pretty good technician.)
- Earnings revisions jumped back to positive this week, 57% positive versus 43% negative, reversing the 3-week slide.
It’s only one opinion, and take it cautiously, but I bet the S&P 500’s bottom is in, and we have a rally to close the last two months of the year.