Russell 2000 Breaks 52-Weeks Highs, Recovering from Bearish Hugs
Small caps still look like good long-term play despite Russell 2000 backlog in the first half of 2024 vs Large Cap S&P500 Index (SPX) and tech-heavy Nasdaq Composite (IXIC) and Nasdaq-100 indices (SPX).
As of July 10, 2024 the Russell 2000 YTD return was about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50% gain in Nasdaq Composite Index (IXIC).
By the way, that valuation measures make the small cap Russell 2000 index much more compelling when compared to the S&P 500.
Thursday was a historically strange day in the stock market. That may be good news.
👉 The Russell 2000 rose more than 3%, while struggles for Big Tech stocks weighed on the S&P 500 and Nasdaq Composite.
At the same time, every stock in the so-called Magnificent Seven fell, including a more than 5% decline for Nvidia and a 2.3% drop for Apple, which dragged down both the S&P 500 and Nasdaq Composite.
👉 Thursday was just the 2nd day in history since 1979 when the Russell 2000 rose more than 3% while the S&P 500 declined.
The split trading came after the June report for the consumer price index early Thursday showed headline inflation declined last month and is now up about 3% over the past year.
👉 The Nasdaq Composite underperformed the Russell 2000 by more than 5 percentage points in what appears to be largest ever daily gap on record.
The only other time the gap came in above 5 percentage points was in November 2020 (where broad stock rally began), right after Pfizer shared positive results from a Covid-19 vaccine trial.
What is The Russell 2000 Index in US stock market universe?!
👉 The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index.
👉 The Russell 2000 Index represents just as low as 7% of the total market capitalization, however it includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership (appr. two-third of The Russell 3000 Index components).
👉 The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
Russell 2000 Index characteristics (as of June 30, 2024)
Price/Book: 2.10
Dividend Yield: 1.44
P/E Ex-Neg Earnings: 16.90
EPS Growth - 5 Years: 14.14
Number of Holdings Russell 2000: 1,921
Russell 2000 Index Technical aspects
In technical terms Russell 2000 Breaks 52-Weeks Highs, Recovering from Bearish Hugs
As of July 10, 2024 the Russell 2000 YTD return was about Zero compared to a 17.75% gain in the S&P 500 (SPX) and 23.50% gain in Nasdaq Composite Index (IXIC).
By the way, that valuation measures make the small cap Russell 2000 index much more compelling when compared to the S&P 500.
Thursday was a historically strange day in the stock market. That may be good news.
👉 The Russell 2000 rose more than 3%, while struggles for Big Tech stocks weighed on the S&P 500 and Nasdaq Composite.
At the same time, every stock in the so-called Magnificent Seven fell, including a more than 5% decline for Nvidia and a 2.3% drop for Apple, which dragged down both the S&P 500 and Nasdaq Composite.
👉 Thursday was just the 2nd day in history since 1979 when the Russell 2000 rose more than 3% while the S&P 500 declined.
The split trading came after the June report for the consumer price index early Thursday showed headline inflation declined last month and is now up about 3% over the past year.
👉 The Nasdaq Composite underperformed the Russell 2000 by more than 5 percentage points in what appears to be largest ever daily gap on record.
The only other time the gap came in above 5 percentage points was in November 2020 (where broad stock rally began), right after Pfizer shared positive results from a Covid-19 vaccine trial.
What is The Russell 2000 Index in US stock market universe?!
👉 The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index.
👉 The Russell 2000 Index represents just as low as 7% of the total market capitalization, however it includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership (appr. two-third of The Russell 3000 Index components).
👉 The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set.
Russell 2000 Index characteristics (as of June 30, 2024)
Price/Book: 2.10
Dividend Yield: 1.44
P/E Ex-Neg Earnings: 16.90
EPS Growth - 5 Years: 14.14
Number of Holdings Russell 2000: 1,921
Russell 2000 Index Technical aspects
In technical terms Russell 2000 Breaks 52-Weeks Highs, Recovering from Bearish Hugs
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