To The Moon

Although last Fri, 12 May pre-market indicators for the 3 composite indexes were “green”, by the time market closed, it was anything but.

3 Indexes last week's performances

DJIA and S&P 500 were lower than at the start of the week. Only Nasdaq managed a negligible rise.

• DJIA was down -1.23% (-414.49 to 33,300.62).

• S&P 500 was down -0.31% (-12.9 to 4,124.08).

• Nasdaq was up +0.43% (+53.06 to 12,284.74). “Best” performing index of the week!

Gains chalked up in early morning “evaporated” after University of Michigan’s Consumer Sentiment data was published.

• Report data for May, 2023 fell sharply to a 6-month low of 57.7 from 63.5 in April.

• It was also well below forecasts of 63.

• Consumers are simply worried about the status / progression etc.. of the US economy.

• Debt crisis standoff between the Biden administration & Congress is main cause, definitely!

Honestly, I don’t think the quarterly earnings reportings “this week” are going to have much of a positive effect on overall market.

This is because the companies are not really “popular” stocks of the “hot” sector / industry.

Regardless how stellar a report these companies are going to present, its “positive” effect would be more “localized” effect.

Above would be some of the more “high profile” companies releasing their earnings this week.

Still interested?

Is There Nothing To Monitor / Observe / Invest?

According to FactSet, about 92% of S&P 500 companies have reported their Q1 results.

Earnings so far for most companies in the sector are down -2.5% from last year.

With already a -4.6% decline in earnings in Q4 2022, this makes it a 2nd straight quarter of earnings declines for the biggest companies in the market.

Having said that, there are still gems to be had despite “earnings recession" encountered.

Again, data from FactSet published on Fri, 12 May showed that 78% of companies have reported earnings that beat expectations.

The “78%” is a higher percentage than the 10-year average of 73%.

One thing about the US market is that opportunities are abound, trick is where does one go hunting for them?

One possibility is to refer to the S&P 500 Sector Market map.

Its kind of like a “heat” map.

It is not a surprise to find “Financial sector” excluded from the map:

• Given the current sentiments about US financial institutions, especially US regional banks.

• The one-off special levy that would be affecting approx. 133 financial institutions. Click here to read ! Give a “LIKe” ok - thanks!

The stock that I will be looking at comes from Utilities sector - $NextEra(NEE)$ .

NEE - past one year stock price as of 12 May 2023.

Why I Think - NexEra Energy Inc - Is Worth A Look?

• This utility company is the world's largest producer of Wind & Solar energy.

• It has a dividend yield of 1.87%

• It has a decent price-to-earnings ratio (P/E) of 23.13.

• It has a robust outlook for earnings growth, with a five-year average annual EPS growth rate averaging 9.5%.

• With emphasis on “Green & Sustainable” energy, it is a company with a built-in “future”.

Last but not least, NEE is expected to benefit from its investments in:

• Renewable energy projects.

• Its regulated utility operations.

• Its attractive valuation relative to its peers.

Is there anything not to like about NexEra Energy Inc?

• Do you think you will be looking to diversify your portfolio of stocks?

• Do you think you would consider “Utility” stocks?

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