Income Report Card

Category: Quant Insight

The 10-year Treasury yield fell to 2.34% last week after breaking out of the trading range that has been in place since the end of the first quarter. The S&P 500 hit a new high last week but advance/decline line failed to hit a new high. This was driven by the strength of tech stocks following a series of good earnings reports which left the leadership of the market in a very narrow group of companies. We think this might be a normal earnings rotation, but it is the first sign of weakness in market breadth over the past several months.

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