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Bank earnings are strong this morning, and all the major banks have been trading up in early trading. Let’s see how they close. I’ve been saying all week the problem is not necessarily going to be earnings, but valuations. Look at Delta . The second-quarter earnings from Delta yesterday could not have been better. The Atlanta-based carrier opened up at a new 52-week high, and within minutes, waves of sell orders came in. Delta ended the day down fractionally. JPMorgan is also at a new high this week and is trading up early, going on strong results. Let’s see how it closes. The market is indeed broadening out Now for some good news: The market is indeed (finally) broadening out. New highs this week in the S & P 500 are not just occurring because tech stocks are strong. Major Sectors This Week (as of Thursday’s close) S & P 500 +1.3% Banks +5.8% Metals/mining +4.1% Energy +3.4% Technology +2.9% Consumer Staples +0.8% Health Care +0.5% The major laggards are the defensive sectors: consumer staples and health care. But if the soft landing is a reality, you don’t want defensive sectors to be leaders, right? You want growth and cyclicals to lead, which is exactly what is happening. Another upsized IPO begins trading on Nasdaq today Finally, the modest initial public offering reopening continues. Apogee Therapeutics, which specializes in treating inflammatory diseases, priced 17.7 million shares at $17, well above the price talk of 15.63 million shares at $15 to $17. That’s about $300 million raised, the second-largest offering for a biotech company in 2023. As for the IPO ETF , which had a miserable 2022, it’s up 43% year to date, far outperforming the S & P 500, and is now within spitting distance of a 52-week high, which it hit back in August of last year.
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