Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuThe S & P 500 is on pace for its second consecutive weekly decline. If it wasn’t for the “Magnificent Seven”, the pullback would be much more severe. The benchmark index is down 0.3% week-to-date through Thursday’s close. Concerns about inflation, elevated oil prices and rising Treasury yields have pressured the market this week. For the Mag 7 , it’s been a different story. The Roundhill Magnificent Seven ETF (MAGS) — made up of Nvidia , Meta , Microsoft , Tesla , Alphabet , Apple and Amazon — is up more than 1% this week. That puts the fund on pace for its fourth consecutive winning week. This week’s move also put the ETF near its all-time closing high of $70.94, reached last May. “Time for the Mag 7 to break out? … It sure looks that way,” wrote Wolfe Research strategist Rob Ginsberg. MAGS closed Thursday’s session at $70.78. That’s about 0.5% below its intraday record of $71.16, also reached in May. The move may be a byproduct of investors moving into higher-quality stocks as macroeconomic pressures persist. All seven companies in the Magnificent Seven have market caps of more than $1 trillion. Most of them are also seen as major beneficiaries of the artificial intelligence revolution. On top of that, Bank of America strategist Jared Woodard warned that the “3Ps are all peaking,” referring to positioning, profitability and policy. “Positioning [is] still too bullish,” Woodward said, citing flows of cash, fund manager survey data and the bank’s Bull & Bear indicator — which is flashing a big sell signal. Woodard added that profits are likely moderating in 2027. Finally, “the ‘run it hot’ policy posture is done” in terms of the macro economy, with the Federal Reserve raising rates this week and Chairman Kevin Warsh highlighting near-term risks around inflation. “Not yet time for defensives but quality, value, and yield look prudent,” Woodard wrote, regarding stock and sector selection.Read More