DC Lite #157

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1. Q2 GDP. The Atlanta Fed's GDPNow model estimate for Q2 growth rose to 2% from 1.5% a week ago.

2. EM equity fund flows. "In June, we saw US$12bn into EM equity funds (after 3 months of flat flows) but almost all inflows were directed into China ETFs."

3. Sector breadth. "Narrowness of new highs suggests breadth is not the best. But at the same time, we are not seeing a broad breakdown. In fact, all 11 sectors in the S&P 500 are above their 200-day averages. When that is the case, the index is usually doing pretty well."

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4. Top 50 vs. Bottom 450 (I). The largest 50 stocks trade at a 30% premium to the bottom 450.

5. Q2 earnings. Based on revisions ratios, guidance ratios, and last quarter's surprise results, Industrials, Financials, and Tech are ranked as most likely to surprise to the upside in Q2.