Piper Sandler analysts boosted their year-end price target for the S&P 500 to 4,825 from 4,625, implying a roughly 5.3% upside from the large-cap index’s current level on Monday. An improving stock-market breadth, which means more stocks are advancing than declining and is usually indicative of a stronger and more sustainable upward trend, will continue to drive the S&P 500
higher before the end of 2023, according to Piper Sandler & Co.’s Craig Johnson, managing director and chief market technician, and Scott K. Smith, technical equity research analyst.
As of July 30, there were approximately 79, or nearly 16% of stocks in the S&P 500 making year-to-date record highs in 2023, while there were 171, or 17% of stocks in the Russell 1000 Growth Index
making their record highs this year. The blue-gauge Dow Jones Industrial Average
has 7, or 23% of stocks logging their highest levels of all time so far in 2023, according to data compiled by Piper Sandler Technical Research (see chart below). “This study detracts from the assertion that the market’s leadership has been limited to just seven ‘magnificent’ megacap stocks,” wrote Johnson and Smith, in a Monday note.
SOURCE: PIPER TECHNICAL RESEARCH, BLOOMBERG
Among all 11 sectors in the S&P 500, industrials
has the most amount of S&P 500 constituents making an record new highs year-to-date, followed by consumer discretionary
and information technology
The financials sector