The S&P 500 opened lower by 36.83 points, or 0.78%, at 4,664.63, while the Nasdaq Composite dropped 180.85 points, or 1.14%, to 15,664.38 at the opening bell.
The fact remains that stocks historically don’t do much from now till October.
No doubt about it, the warm months of May through October are the worst for the stock market, hence the old saying: “Sell in May and go away.”
While liquidating an entire equities portfolio may be absurd for institutional investors, there is a case to be made for cashing in some gains, or for rebalancing out of overweight hot sectors, during what historically is a slow spell.
To be sure, pulling back in 2020’s May-October stretch wasn’t the best idea. That six-month period last year saw the S&P 500 run up 12.6%. That’s roughly two-thirds of its rise for all of 2020.
Wall Street s main indexes rose on Monday after a week of largely upbeat earnings strengthened expectations of sustained profit growth for companies, while some high-flying growth stocks lagged a broader rally. With more than half of S&P 500 companies having already reported results so far, profits are seen rising 46% in the first quarter, compared with forecasts of 24% growth at the start of April, according to IBES data from Refinitiv. Nine of the 11 major S&P 500 sectors climbed in early trading, with economy-sensitive cyclical stocks, including financials, energy, industrials, and materials, leading the gains. Earnings so far have been substantially better than projections. People and institutions are feeling positive about the market right now even though we re close to all-time highs, said Mark Grant, chief global market strategist at B. Riley FBR in Fort Lauderdale, Florida.
Wall Street kicks off month on strong footing, growth stocks lag
By Shreyashi Sanyal and Sruthi Shankar
Reuters
(Reuters) - Wall Street s main indexes rose on Monday after a week of largely upbeat earnings strengthened expectations of sustained profit growth for companies, while some high-flying growth stocks lagged a broader rally.
With more than half of S&P 500 companies having already reported results so far, profits are seen rising 46% in the first quarter, compared with forecasts of 24% growth at the start of April, according to IBES data from Refinitiv.
Nine of the 11 major S&P 500 sectors climbed in early trading, with economy-sensitive cyclical stocks, including financials, energy, industrials, and materials, leading the gains.
Stocks came off session highs as giants Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Traders also assessed economic data, with inflation remaining at the forefront of the investment debate. The dollar fell, while Treasuries advanced.
Most major groups in the S&P 500 rose, with gains in commodity and industrial shares offsetting losses in tech and retail companies. Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its COVID-19 shot to the vaccination program known as Covax. Berkshire Hathaway Inc. climbed as Warren Buffett said Greg Abel, vice chairman of non-insurance businesses, would be his likely successor. Estee Lauder Cos. sank as the cosmetics giantâs sales missed estimates.