DC Lite #151

5 of Friday's best charts and insights

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights. Upgrade to get all 30 charts.

Administrative note: There will be no DC Lite on July 4 and 5. Publishing will resume the following Friday, July 8.

1. US freight. "Tender rejections are now above 6% for the first time since July 2022.  This is a huge sign that conditions in the freight market are tightening.  The risk of a capacity crunch in the trucking market during the 2H is real."

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2. Personal savings rate. "Saving rate edged up in May, but it's still well below prepandemic norm. Positive spin: Americans aren't feeling the need to pull back spending. Neg. spin: Americans are barely able to make ends meet."

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3. Credit spreads. "The spread between the weakest and strongest investment-grade credits bottomed nearly two months ago. Credit concerns are rising even as stocks hit record highs. This is unusual and was last seen in late 2021."

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4. Breadth mean reversion. "History suggests weak breadth itself isn’t a precursor of market weakness: in years of mega-cap leadership since 1986, the market was up the subsequent year nearly 75% of the time."

5. Stocks vs. July. As a reminder, the first half of July has been the best 2 week period for S&P 500 returns since 1928.

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