The S&P 500® Index closed at a new record high on Friday, boosted by stronger-than-expected manufacturing and housing data. The mega-cap outliers are still running the show though as small- and mid-caps—and even ~60% of S&P 500 companies—post losses. Over in the bond market, the yield curve is slowly normalizing, but credit risk remains significantly elevated as corporate bankruptcies approach a 10-year high. And as the PMI recovery pauses in Europe, U.S. manufacturing activity hit a 19-month high, and services a 17-month high, in August as the economic reopenings march on and demand reignites. Here’s hoping the trend continues…
1. Fewer than a dozen stocks were responsible for the lion share of S&P 500’s gains while small- and mid- caps retreated.
![](https://blog.investbcm.com/hubfs/8-24%20Fewer%20than%20a%20dozen%20stocks%20were%20responsible-png-2.png)
Source: The Daily Shot, from 8/24/20
2. The U.S. yield curve continues to “normalize” as the long end slowly widens out…
![](https://blog.investbcm.com/hubfs/8-24%20The%20U-S-%20yield%20curve%20continues%20to%20normalize-png-1.png)
Source: The Daily Shot, from 8/24/20
3. The speeds of the 2020 bear and recovery are being matched by another, more ominous trend…
![](https://blog.investbcm.com/hubfs/8-24%20the%20speeds%20of%20the%202020%20bear-png-1.png)
Source: The Daily Shot, from 8/24/20
4. After a 10.5% decline, is the U.S. dollar breaking down out of its long-term trading channel?
![](https://blog.investbcm.com/hubfs/8-24%20After%20a%2010-5%25%20decline-png.png)
Source: The Daily Shot, from 8/24/20
5. In Europe, the recovery is resting as Germany was strong, but France retreated a bit…
![](https://blog.investbcm.com/hubfs/8-24%20In%20Europe,%20the%20recovery%20is%20resting%20as%20Germany%20was%20strong%20but%20France%20retreated%20a%20bit----png-1.png)
Source: The Daily Shot, from 8/23/20
6. Here at home it is “steady as she goes”… at least for now…
![](https://blog.investbcm.com/hubfs/8-24%20here%20at%20home-png-1.png)
![](https://blog.investbcm.com/hubfs/8-24%20Here%20at%20home%20part%202-png-1.png)
Source: The Daily Shot, from 8/23/20
7. Maybe the USPS should prohibit marketing mail in the 10 days before the election…
![](https://blog.investbcm.com/hubfs/8-24%20maybe%20the%20usps-png-1.png)
Source: The Daily Shot, from 8/24/20