The New York Stock Exchange with a Hims & Hers Health, Inc banner is pictured as a person runs past in the Manhattan borough of New York City, New York, U.S., January 21, 2021. REUTERS/Carlo Allegri
Next week’s crop of fourth-quarter results - with about a quarter of the S&P 500 reporting - could help determine whether the resurgence in growth stocks will continue, potentially threatening the recent rally in value and cyclical shares, said Chuck Carlson, chief executive officer at Horizon Investment Services.
But a resumption in tech outperformance could also revive concerns over investor crowding into popular names. The biggest five technology-related companies account for about 22% of the weight of the S&P 500. Investors are particularly watching corporate outlooks, given the expectation of an economic rebound this year. Earnings are expected to rise 23.7% this year after falling 14.1% in 2020, according to Refinitiv.
Bernie doesn’t approve