The first quarter of 2024 was rewarding for equity investors, as the S&P 500 increased 10.2%. Much of the market participated, as the S&P 500 Growth Index advanced 12.6% and the S&P 500 Value Index rose 7.4%. Leading sectors included Communication Services (+15.6%), Energy (+12.7%), Technology (+12.5%), Financials (+12%), and Industrials (+10.6%). The average stock in the Argus Universe of Coverage rose 8.0% during the year, and the median stock advanced 7.2%. The average BUY-rated stock increased 9.9%, while the average HOLD-rated stock gained 3%. Will the market's breadth hold up for the balance of 2024 or will investors revert to the so-called Magnificent 7? Will small-caps pick up their pace (the Russell 2000 was up "only" 4.8% in 1Q) or is the current bull-market rally due for a break, with some profit-taking coming into play? Given declining interest rates, we expect growth stocks to continue to lead stocks higher, while the risk of recession puts a premium on clean balance sheets, which are also more prevalent among large-caps. Investors seeking value are encouraged to focus on dividends and look for yields in the 3%-4% range. Here are the Top 10 Performers from the Argus Universe last quarter (including representatives of six of the 11 major sectors) as well as the Bottom-Five Performers.

Stocks were mixed on Friday morning following the January jobs report. In January, nonfarm payroll employment rose 353,000 and the unemployment rate was unchanged at 3.7%. The jobs count is up from 216,000 in December and well ahead of the expected 185,000, and the belief had been that unemployment would inch up to 3.8%. The S&P 500 rose 0.9%, the Dow was nearly flat and the Nasdaq gained 1.5%. Crude oil traded just above $72 per barrel, while gold fell $17 to $2053 per ounce.

Stocks fell on Thursday and bond yields rallied after Fed Chair Powell said that although he was encouraged by the slowing pace of inflation, he has not ruled out another rate increase. The $24 billion sale of the 30-year Treasury bonds was weaker than expected. The S&P 500 fell 0.8%, the Dow lost 0.7% and the Nasdaq was down almost 1%. Crude oil fell to $75 per barrel, while gold traded near $1963 per ounce.

Summertime Blues

Stocks started a new bull market in 2Q23, as the S&P 500 climbed 20% above bear-market lows from last October. For the quarter, the index climbed about 8%. Performance was narrow in 2Q, led by last year's laggard sectors, including Communication Services, Consumer Discretionary, and Technology. Last year's top-performing sector, Energy, and the Utility sector, were the worst performers in 2Q23. The average stock in the diversified Argus Universe of Coverage rose 4% in the quarter, and the median stock advanced 2%. The average Argus BUY-rated stock rose 5.7%, while the average HOLD-rated stock gained 1.2%. We recently raised our sector rating on Consumer Discretionary to Over-Weight, as the employment environment is strong. We also look for a pick-up in EPS growth in Communication Services and Technology, and expect these groups to pace broad market performance. Below are the top 10 performers from the Argus Universe in 2Q23, many from Technology and Communication Services. After that, we list the bottom five performers.

Several weeks ago, with insider-transaction volume at cyclical lows because of trading restrictions in place during earnings season, we noted more insider selling than buying. But we also noted that the majority of the selling was the result of prescheduled sales by insiders, and not 'spur of the moment' reactions to market developments.

Strong Start: Our Monthly Survey of the Economy, Interest Rates, and Stocks

Rally in October, Stumble on the Fed: Our Monthly Survey of the Economy, Interest Rates, and Stocks

Fed Chair Jerome Powell will deliver his much anticipated speech in Jackson Hole on Friday morning. Investors will be scrutinizing Mr. Powell's comments for clues about the size of the September interest rate hike, and the pace of additional hikes later this year and in 2023. Ahead of the Fed conference, Kansas City Fed President Esther George said that it was 'too soon' to predict the size of the September hike, and that the decision would depend on upcoming economic data. On Thursday, the Commerce Department reported a smaller-than-expected decline in 2Q GDP. First-time claims for state unemployment benefits were down slightly from the prior week and below the consensus forecast. The Dow rose 0.98%, the S&P 1.41%, and the Nasdaq 1.67%. Crude oil fell 2% to $93 per barrel, while gold rose $10 to $1771 per ounce.

Stocks have struggled in 2Q 2022, with the S&P 500 on its way to a double-digit drop for the period. Absent the rally in recent days, the decline would be closer to 20%. Growth stocks have again been the weakest performers, as sectors such as Technology, Communication Services, and Consumer Discretionary all have lagged the major market indices. The leading sectors were value-oriented, including Energy, Consumer Staples, Basic Materials, and Utilities. The average stock in the Argus Universe of Coverage has declined 13.1% thus far during the quarter, and the median stock declined 12.5%. The average BUY-rated stock dropped 12.6%, while the average HOLD-rated stock fell 14.4%. Will investors continue to favor value in 2022? Will high inflation drive continued outperformance in Energy and Basic Materials? Given interest rates that remain historically low, we expect growth stocks to resume outperformance over time, and think 2022 may be a "one-in-five year" that value leads. Investors seeking value are encouraged to focus on dividends and look for yields in the 3%-4% range. Concerning sectors, our current Over-Weights are Energy, Financial, Healthcare, Industrials, and Basic Materials. Here are the top-10 and bottom-five performers from the Argus Universe in 2Q.

Earnings, Economy Roll along through Market Wreckage

Stocks fell again on Tuesday morning amid continued war concerns, as Russian forces moved closer to Kyiv and launched rocket attacks on civilian targets in Kharkiv, Ukraine's second-largest city. U.S. manufacturing data was positive. The Institute for Supply Management said that its national factory index rose to 58.6 in February, up from 57.6 in January and above the Reuters consensus forecast of 58.0. The Dow fell 1.7%, the S&P 1.3%, and the Nasdaq 1.2%. Crude oil jumped to more than $103 per barrel, while gold traded near $1928 per ounce.

Investors wrapped up a quiet final week in 2021 with a modest loss for the S&P 500. But that hardly dented a strong year for stocks, when the S&P 500 climbed almost 27%. The average stock in the Argus Universe of Coverage rose 24% during the quarter, and the median stock advanced 36%. The average BUY-rated stock increased 28%, while the average HOLD-rated stock gained 15%. Will investors continue to favor value in 2021? Will small-caps reverse their recent weak trend? Given low interest rates, we expect growth stocks to resume outperformance over time. Investors seeking value are encouraged to focus on dividends and look for yields in the 3%-4% range. As for small-caps, the promise of the vaccine is encouraging for these companies, which typically don't have the gilt-edged balance sheets of large-caps and are thus more dependent on a strong U.S. economy. Small-cap valuations remain depressed, and this group looks to offer value into 2022.

Stocks rallied on Friday morning following a strong October employment report. The Labor Department said that the U.S. economy added 531,000 payroll jobs last month, up from a revised 312,000 in September and above the Reuters consensus forecast of 450,000. The official unemployment rate fell to 4.6% from 4.8% in September. The Dow rose 0.9%, the S&P 0.7%, and the Nasdaq 0.6%. Crude oil traded near $79.50 per barrel, while gold rose $8 to $1802 per ounce.

A couple of the major indices are again hitting or approaching some key Fibonacci extension targets, so this is no time to put a portfolio on auto-pilot (even if that's how it feels). The targets are based on the depth of the 'V' bottom back in early 2020. Once an index or individual stock breaks out to all-time highs, there is no chart resistance or supply overhead as every buyer of the asset has a profit. Therefore, potential targets must come from other technical tools like trendlines, the top of a channel, and Fibonacci extensions based on the size of the latest reversal formation.

Stocks rose on Thursday, recovering some of their recent losses, as investors weighed earnings from Cisco and Kohl's and new weekly employment data. Cisco posted better-than-expected fiscal 3Q revenue and earnings, though management projected below-consensus EPS in 4Q. Kohl's also reported strong fiscal first-quarter results, but disappointed investors with lower-than-expected full-year sales guidance. KSS shares fell 10%. On the employment front, first-time jobless claims fell to a new pandemic era low of 444,000, down from the prior week and below consensus. However, continuing claims rose to 3.751 million, up from 3.655 million a week earlier and above the consensus forecast of 3.62 million. The Dow rose 0.55%, the S&P 1.06%, and the Nasdaq 1.77%. Crude oil fell more than 2% to $62 per barrel, while gold fell $4 to $1878 per ounce.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Monster Beverage Corp. (MNST); Restaurant Brands Intl In (QSR); General Dynamics Corp. (GD); HCA Healthcare Inc (HCA) and the Focus List deletions are Peloton Interactive Inc (PTON); Clorox Co. (CLX); Lockheed Martin Corp. (LMT); Regeneron Phars, Inc (REGN).

The first quarter was good for stocks, as the S&P 500 increased more than 6.0%. The average stock in the Argus Fundamental Universe of Coverage advanced more than 13%, and the median stock gained 9.6%. The average BUY-rated stock increased 12%, while the average HOLD-rated stock rose 16%. Will investors continue to favor value and small-cap? Given low interest rates, we expect growth stocks to outperform over time, but think that 2021 may be the "one-in-five years" that value leads. Investors seeking value are encouraged to focus on dividends and look for yields in the 3%-4% range. For small-caps, the vaccine is encouraging as these companies typically don't have the gilt-edged balance sheets of large-caps and are more dependent on a strong U.S. economy. Small-cap valuations remain depressed despite the recent run, and this group continues to look well positioned in 2021.

There are now more than 80 million Millennials, born between 1982 and 2000 and ranging in age from their early 20s to their late-30s. This generation is the largest in history - bigger than even the Baby Boomers. Yet despite their size, and according to our research, Millennials currently account for 25% of total U.S income - some $3.1 trillion in direct annual purchasing power. Millennials are already coveted by marketers, even though their annual average income is 40% below the spending levels of the generation ahead of them (Gen X) and 30% below the spending levels of Baby Boomers, who are slowing down. But as Millennials rise into their peak earning years, their earnings are expected to grow.

We have highlighted (repeatedly) the current strong market breadth, even suggesting it might be too strong and in need of a reset. We've also talked about extremely overheated market sentiment, also in need of a nice reset as we see it.

The IPO market extended momentum that had been building in 2Q and 3Q and grew sharply again year-over-year in 4Q. The quarter was bumpy, with a flood of issuance in October as corporate earnings improved, then a pause in early November related to the presidential election. Once the votes were cast -- and even before they were fully counted -- IPO activity picked back up and was heavy into the holiday season. IPO activity jumped 55% year-over-year in 4Q20, though the volume of offerings was down 24% compared to 3Q20. By the numbers, 65 operating companies raised funds through IPOs in 4Q20, up from 42 in 4Q19 but down from 86 last quarter. IPO investors favored industries that appear well positioned to thrive on the other side of the pandemic, such as drug discovery and oncology in Healthcare, and digital and cloud from the Technology sector. The ratio of positive issue-opens to negative issue-opens was 3:1 in 4Q20, up from a ratio of 2.5:1 in 3Q20. Looking into 2021, we think the market for IPOs will remain strong, given a deep pipeline of companies that have filed with the SEC as well as a long list of Unicorns that are ready to fly.

On paper, most recent investment trends remained intact for the full year 2020. Large-caps outperformed small-caps; growth topped value; and domestic stocks returned more than international stocks. Will it be a value market in 2021? Will small-caps continue their recent strong run? Given low interest rates, we favor growth stocks and think that investors recently were simply taking some extraordinary profits from their winners in an extraordinary year. Investors seeking value are encouraged to look for dividend yields in the 3%-4% range. As for small-caps, the promise of a COVID-19 vaccine is encouraging for these companies, which typically don't have the strong balance sheets of large-caps and are thus more dependent on a strong U.S. economy. Small-cap valuations remain depressed despite the recent run, and this group continues to look well-positioned in 2021.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Director of Research Kelleher typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Trane Technologies plc (TT); Linde Plc (LIN); Western Digital Corp. (WDC); Peloton Interactive Inc (PTON) and the Focus List deletions are PPG Industries, Inc. (PPG); Roper Technologies Inc (ROP); Snap Inc (SNAP); TJX Companies, Inc. (TJX).

Scores, if not hundreds, of fast-growing but still-formulating companies have yet to launch shares on global exchanges. Once these private companies achieve valuation levels of $1 billion, they are known as Unicorns. We estimate there are currently more than 400 Unicorns, valued collectively at just short of $1 trillion. In 3Q, 10 Unicorns came public. These included Healthcare and Tech companies such as Snowflake, CureVac B.V., Sumo Logic, Jfrog Ltd., GoodRx Holdings Inc., KE Holdings Inc., Chindata Group Holdings Ltd. and XPeng Inc. All were successful (up on average more than 60% in their first day of trading), in contrast to the poor receptions in recent quarters for formerly high-flying but unprofitable companies such as Lyft, Uber and SmileDirectClub. Increasingly, investors are demanding profitability, fair ownership policies and reasonable valuations from Unicorns. We have been adding select recent IPOs to our Universe of Coverage, focusing on profitable companies with strong balance sheets, experienced management teams and clear growth paths.

With volatility and sector rotation grabbing financial press headlines, stocks have been down more than up of late. Meanwhile, Vickers Stock Research has been reporting insider transaction data that in total has not been alarming -- but has reflected many of the themes currently in play.

With volatility and sector rotation grabbing financial press headlines, stocks have been down more than up of late. Meanwhile, Vickers Stock Research has been reporting insider transaction data that in total has not been alarming -- but has reflected many of the themes currently in play.

The market has mainly skidded lower over the past six trading days spanning two weeks. Is this a healthy correction of an overbought market, or a sign of further market distress to come? We won't know right away - but, so far, the stock market mainly has unwound much of its August run-up.

The market has mainly skidded lower over the past six trading days spanning two weeks. Is this a healthy correction of an overbought market, or a sign of further market distress to come? We won't know right away - but, so far, the stock market mainly has unwound much of its August run-up.

Between 2/5/20 and 2/12/20, the S&P 500 traded above 3,300, before its spectacular fall to the 2,300s in the final weeks of March. On 7/22/20, the index closed at 3,276 -- the closest is has come to 3,300 since February. But stocks slid on Thursday and Friday, as a rising tide of new coronavirus infections and daily deaths took its toll.

We have published our latest version of the Argus Millennial Generation portfolio. This new generation of consumers - the Millennials - has recently become the largest demographic cohort in the country, and this group, with new lifestyle preferences and different career goals, is demanding a new menu of sustainable products and services. The intersection of important Millennial trends - sustainability, healthier living, an entrepreneurial spirit - has resulted in the emergence and growth of numerous companies well suited to the new generation. Many of these companies are expected to be future industry leaders and are included in the dynamic Argus Universe of Coverage. A diversified portfolio, of course, is more than just a list of companies linked to themes. To build the Argus Millennial Generation Portfolio, we applied financial concepts such as industry diversification, income generation, risk reduction and growth at a reasonable price.

The major market indices are having a strong second quarter, with gains for the S&P 500, Dow Jones Industrial Average and Nasdaq Composite ranging from 18%-30%. Growth stocks are outperforming value, as the Russell 1000 Growth Index is up 28% compared to the Russell 1000 Growth Index's gain of 13%. Small-caps have outperformed, with the Russell 2000 rising approximately 25%. Industrialized international stocks underperformed domestic stocks, as the EAFE Index increased 15% while the MSCI Emerging Markets Index advanced a stronger 20%. Within the Argus Universe, the Top 5 and Bottom 5 performers were as follows.

The major market indices are having a strong second quarter, with gains for the S&P 500, Dow Jones Industrial Average and Nasdaq Composite ranging from 18%-30%. Growth stocks are outperforming value, as the Russell 1000 Growth Index is up 28% compared to the Russell 1000 Growth Index's gain of 13%. Small-caps have outperformed, with the Russell 2000 rising approximately 25%. Industrialized international stocks underperformed domestic stocks, as the EAFE Index increased 15% while the MSCI Emerging Markets Index advanced a stronger 20%. Within the Argus Universe, the Top 5 and Bottom 5 performers were as follows.

A new generation of consumers - the Millennials - has become the largest demographic cohort in the country. This group, with new lifestyle preferences and different career goals, is demanding a new menu of sustainable products and services. There are now more than 80 million Millennials, born between 1982 and 2000 and ranging in age from their early 20s to their late-30s. This generation is the largest in history - bigger than even the Baby Boomers. Yet despite their size, and according to our research, Millennials currently account for 24% of total U.S income -- some $2.9 trillion in direct annual purchasing power, mostly representing older Millennials established in their work and families. Of course, Millennials are already coveted by marketers, even though their annual average income is 40% below the spending levels of the generation ahead of them (Gen X) and 30% below the spending levels of Baby Boomers, who are slowing down. That's because as Millennials rise into their peak earning years, their earnings are expected to grow. Disposable income will further rise as 30-something Millennials pay off their "mountain" of student debt. We have added the following stocks to our Millennial portfolio based on our latest review of fundamentals and consultation with our team of analysts.

A new generation of consumers - the Millennials - has become the largest demographic cohort in the country. This group, with new lifestyle preferences and different career goals, is demanding a new menu of sustainable products and services. There are now more than 80 million Millennials, born between 1982 and 2000 and ranging in age from their early 20s to their late-30s. This generation is the largest in history - bigger than even the Baby Boomers. Yet despite their size, and according to our research, Millennials currently account for 24% of total U.S income -- some $2.9 trillion in direct annual purchasing power, mostly representing older Millennials established in their work and families. Of course, Millennials are already coveted by marketers, even though their annual average income is 40% below the spending levels of the generation ahead of them (Gen X) and 30% below the spending levels of Baby Boomers, who are slowing down. That's because as Millennials rise into their peak earning years, their earnings are expected to grow. Disposable income will further rise as 30-something Millennials pay off their "mountain" of student debt. We have added the following stocks to our Millennial portfolio based on our latest review of fundamentals and consultation with our team of analysts.

Stocks have been stuck in neutral over the past couple of days, unable to get traction in any direction. Is that it for the latest pullback or will we see another decline and trace out a typical 3-wave ABC decline? That is the short-term question. Some breadth indicators took a hit recently, while others actually improved. The overall view still suggests good returns are possible in the intermediate- to long-term window.

Stocks have been stuck in neutral over the past couple of days, unable to get traction in any direction. Is that it for the latest pullback or will we see another decline and trace out a typical 3-wave ABC decline? That is the short-term question. Some breadth indicators took a hit recently, while others actually improved. The overall view still suggests good returns are possible in the intermediate- to long-term window.

It was an ugly reversal for the stock market on Thursday, with the S&P 500 falling 188 points, or 5.9%. That is the largest one-day decline since March 16. The Nasdaq gave up 5.3%, the S&P 400 MidCap 400 (MDY) plunged 7.2% and the Russell 2000 (IWM) was off 7.5%. Is this a one- or two-day hit that shakes things up quickly or something bigger? There is still strong support under the indices, so perhaps this is a much-needed and quick momentum/sentiment reset.

It was an ugly reversal for the stock market on Thursday, with the S&P 500 falling 188 points, or 5.9%. That is the largest one-day decline since March 16. The Nasdaq gave up 5.3%, the S&P 400 MidCap 400 (MDY) plunged 7.2% and the Russell 2000 (IWM) was off 7.5%. Is this a one- or two-day hit that shakes things up quickly or something bigger? There is still strong support under the indices, so perhaps this is a much-needed and quick momentum/sentiment reset.

The Argus Research Fundamental Universe of Coverage includes approximately 500 leading U.S. and international companies. We cover the waterfront -- from Technology to Utilities, from Energy to Healthcare. Generally, we follow the Top 200 most widely-held stocks, which we source from our sister company Vickers Stock Research (which collects institutional ownership data from the U.S Securities and Exchange Commission). From there, we look to identify the next 200-300 leading U.S. and International companies to add to our list. Our Universe of Coverage is growing: three years ago, we were closer to 400. In another couple of years, we look to be closer to 600. We are adding stocks to coverage continually and often get great ideas from our clients. Here are five of our most-recent additions; all are rated BUY.

The Argus Research Fundamental Universe of Coverage includes approximately 500 leading U.S. and international companies. We cover the waterfront -- from Technology to Utilities, from Energy to Healthcare. Generally, we follow the Top 200 most widely-held stocks, which we source from our sister company Vickers Stock Research (which collects institutional ownership data from the U.S Securities and Exchange Commission). From there, we look to identify the next 200-300 leading U.S. and International companies to add to our list. Our Universe of Coverage is growing: three years ago, we were closer to 400. In another couple of years, we look to be closer to 600. We are adding stocks to coverage continually and often get great ideas from our clients. Here are five of our most-recent additions; all are rated BUY.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. Many smaller companies are focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. As well, the long-term record had favored small-caps over large-caps, prior to COVID-19. From 2003-2019, the Russell 2000 Index climbed 282%, compared to an advance of 233% for the Russell 1000. YTD in 2020, a relatively weak performance by the Russell 2000 has brought the measures more in line. But small-caps can be risky. Large-caps outperformed small-caps in 10 of the 17 years of our test period. Annual returns were negative four times for both, but the average decline for small-caps was 16% in down years versus 12% for large-caps. Yet when small-caps rise, they tend to rise sharply. The average annual gain in positive years was 19% for small-caps, versus 16% for large-caps. Despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate 15% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks. We target that allocation for our ETF Model Portfolios.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. Many smaller companies are focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. As well, the long-term record had favored small-caps over large-caps, prior to COVID-19. From 2003-2019, the Russell 2000 Index climbed 282%, compared to an advance of 233% for the Russell 1000. YTD in 2020, a relatively weak performance by the Russell 2000 has brought the measures more in line. But small-caps can be risky. Large-caps outperformed small-caps in 10 of the 17 years of our test period. Annual returns were negative four times for both, but the average decline for small-caps was 16% in down years versus 12% for large-caps. Yet when small-caps rise, they tend to rise sharply. The average annual gain in positive years was 19% for small-caps, versus 16% for large-caps. Despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate 15% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks. We target that allocation for our ETF Model Portfolios.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, many smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. SP despite risks associated with smaller-cap stocks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 15%-20% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, many smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. SP despite risks associated with smaller-cap stocks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 15%-20% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, most smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record had favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. This week's list includes stocks with market caps below $12 billion; that are on the Argus BUY list; and are included in our Mid-Cap model portfolio.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, most smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record had favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. This week's list includes stocks with market caps below $12 billion; that are on the Argus BUY list; and are included in our Mid-Cap model portfolio.

Technology has been the leading sector in 2020, which continues a multi-year pattern and also reflects new inputs. The iShares Technology ETF (IYW) is up 4.6% year-to-date, while the S&P 500 is down 9.3% and the DJIA is off 14.7%.

Technology has been the leading sector in 2020, which continues a multi-year pattern and also reflects new inputs. The iShares Technology ETF (IYW) is up 4.6% year-to-date, while the S&P 500 is down 9.3% and the DJIA is off 14.7%.

Who let the dogs out? Put another way, who woke up the lagging small- and mid-cap stocks? The bear market devastated those issues, with the Russell 2000 (IWM), the S&P 600 (SML), and the S&P 400 MidCap (MDY) all cratering 44%-45%. It's somewhat amazing that their respective declines were so similar.

Who let the dogs out? Put another way, who woke up the lagging small- and mid-cap stocks? The bear market devastated those issues, with the Russell 2000 (IWM), the S&P 600 (SML), and the S&P 400 MidCap (MDY) all cratering 44%-45%. It's somewhat amazing that their respective declines were so similar.

U.S. stocks rose modestly on Monday morning after initially opening lower. Fears about the economic effects of the coronavirus continue to unsettle investors, as information about the situation in China is spotty and not considered particularly reliable. Industries doing well today include direct marketing retail, leisure products, and communications equipment. Industries trading lower today include energy equipment and services; oil, gas and consumable fuels; and diversified consumer services. The VIX is down 0.08 to 15.39. The Dow rose 0.3%, the S&P 0.3%, and the Nasdaq 0.5%. Crude oil fell slightly to $50 per barrel, while gold rose $4 to trade near $1578 per ounce.

U.S. stocks rose modestly on Monday morning after initially opening lower. Fears about the economic effects of the coronavirus continue to unsettle investors, as information about the situation in China is spotty and not considered particularly reliable. Industries doing well today include direct marketing retail, leisure products, and communications equipment. Industries trading lower today include energy equipment and services; oil, gas and consumable fuels; and diversified consumer services. The VIX is down 0.08 to 15.39. The Dow rose 0.3%, the S&P 0.3%, and the Nasdaq 0.5%. Crude oil fell slightly to $50 per barrel, while gold rose $4 to trade near $1578 per ounce.

Purchasing Managers around the globe are a nervous lot. The latest surveys of their intentions indicate the all-important manufacturing sector is either slowing dramatically or contracting. In the U.S., the latest PMI survey, conducted by the Institute for Supply Management (ISM) in November, generated a reading of 48.1. That's below the all-important 50 mark, as anything above 50 implies growth in the manufacturing sector. The index was soaring above 60 just 18 months ago. IHS Markit also surveys purchasing managers in other countries, and they are not much rosier. First the good news: China's manufacturing sector is expanding, given the recent reading of 53.5. Now the bad news: the Eurozone is even weaker than the U.S., with a regional reading of 46.9, while key constituent Germany's latest reading was 43.8 (ugh). In the UK, where uncertainty abounds given the status of Brexit, the current reading of 48.9 also signals contraction. This is the environment in which President Trump is conducting his trade war. If that war winds down, we expect to see global PMI readings once again above the 50 level.

Purchasing Managers around the globe are a nervous lot. The latest surveys of their intentions indicate the all-important manufacturing sector is either slowing dramatically or contracting. In the U.S., the latest PMI survey, conducted by the Institute for Supply Management (ISM) in November, generated a reading of 48.1. That's below the all-important 50 mark, as anything above 50 implies growth in the manufacturing sector. The index was soaring above 60 just 18 months ago. IHS Markit also surveys purchasing managers in other countries, and they are not much rosier. First the good news: China's manufacturing sector is expanding, given the recent reading of 53.5. Now the bad news: the Eurozone is even weaker than the U.S., with a regional reading of 46.9, while key constituent Germany's latest reading was 43.8 (ugh). In the UK, where uncertainty abounds given the status of Brexit, the current reading of 48.9 also signals contraction. This is the environment in which President Trump is conducting his trade war. If that war winds down, we expect to see global PMI readings once again above the 50 level.

With volatility and sector rotation grabbing financial press headlines, stocks have been down more than up of late. Meanwhile, Vickers Stock Research has been reporting insider transaction data that in total has not been alarming -- but has reflected many of the themes currently in play.

The market has mainly skidded lower over the past six trading days spanning two weeks. Is this a healthy correction of an overbought market, or a sign of further market distress to come? We won't know right away - but, so far, the stock market mainly has unwound much of its August run-up.

Between 2/5/20 and 2/12/20, the S&P 500 traded above 3,300, before its spectacular fall to the 2,300s in the final weeks of March. On 7/22/20, the index closed at 3,276 -- the closest is has come to 3,300 since February. But stocks slid on Thursday and Friday, as a rising tide of new coronavirus infections and daily deaths took its toll.

A new generation of consumers - the Millennials - has become the largest demographic cohort in the country. This group, with new lifestyle preferences and different career goals, is demanding a new menu of sustainable products and services. There are now more than 80 million Millennials, born between 1982 and 2000 and ranging in age from their early 20s to their late-30s. This generation is the largest in history - bigger than even the Baby Boomers. Yet despite their size, and according to our research, Millennials currently account for 24% of total U.S income -- some $2.9 trillion in direct annual purchasing power, mostly representing older Millennials established in their work and families. Of course, Millennials are already coveted by marketers, even though their annual average income is 40% below the spending levels of the generation ahead of them (Gen X) and 30% below the spending levels of Baby Boomers, who are slowing down. That's because as Millennials rise into their peak earning years, their earnings are expected to grow. Disposable income will further rise as 30-something Millennials pay off their "mountain" of student debt. We have added the following stocks to our Millennial portfolio based on our latest review of fundamentals and consultation with our team of analysts.

The Argus Research Fundamental Universe of Coverage includes approximately 500 leading U.S. and international companies. We cover the waterfront -- from Technology to Utilities, from Energy to Healthcare. Generally, we follow the Top 200 most widely-held stocks, which we source from our sister company Vickers Stock Research (which collects institutional ownership data from the U.S Securities and Exchange Commission). From there, we look to identify the next 200-300 leading U.S. and International companies to add to our list. Our Universe of Coverage is growing: three years ago, we were closer to 400. In another couple of years, we look to be closer to 600. We are adding stocks to coverage continually and often get great ideas from our clients. Here are five of our most-recent additions; all are rated BUY.

The major market indices are having a strong second quarter, with gains for the S&P 500, Dow Jones Industrial Average and Nasdaq Composite ranging from 18%-30%. Growth stocks are outperforming value, as the Russell 1000 Growth Index is up 28% compared to the Russell 1000 Growth Index's gain of 13%. Small-caps have outperformed, with the Russell 2000 rising approximately 25%. Industrialized international stocks underperformed domestic stocks, as the EAFE Index increased 15% while the MSCI Emerging Markets Index advanced a stronger 20%. Within the Argus Universe, the Top 5 and Bottom 5 performers were as follows.

Stocks have been stuck in neutral over the past couple of days, unable to get traction in any direction. Is that it for the latest pullback or will we see another decline and trace out a typical 3-wave ABC decline? That is the short-term question. Some breadth indicators took a hit recently, while others actually improved. The overall view still suggests good returns are possible in the intermediate- to long-term window.

It was an ugly reversal for the stock market on Thursday, with the S&P 500 falling 188 points, or 5.9%. That is the largest one-day decline since March 16. The Nasdaq gave up 5.3%, the S&P 400 MidCap 400 (MDY) plunged 7.2% and the Russell 2000 (IWM) was off 7.5%. Is this a one- or two-day hit that shakes things up quickly or something bigger? There is still strong support under the indices, so perhaps this is a much-needed and quick momentum/sentiment reset.

Technology has been the leading sector in 2020, which continues a multi-year pattern and also reflects new inputs. The iShares Technology ETF (IYW) is up 4.6% year-to-date, while the S&P 500 is down 9.3% and the DJIA is off 14.7%.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, many smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. SP despite risks associated with smaller-cap stocks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 15%-20% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. For one thing, most smaller companies often are more focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. For another, prior to COVID-19, the long-term record had favored small-caps over large-caps. From 2003-2019, the Russell 2000 Index had climbed 282%, compared to an advance of 233% for the Russell 1000 Index. In 2020, a relatively weak performance by the Russell 2000 Index has brought the measures more in line for the year-to-date. This week's list includes stocks with market caps below $12 billion; that are on the Argus BUY list; and are included in our Mid-Cap model portfolio.

Large-caps have outperformed over the past 12 months, but small- and mid-caps may be in a better position to generate market-beating returns going forward. Many smaller companies are focused on domestic operations and may not be exposed to the global economic uncertainty caused by the coronavirus. As well, the long-term record had favored small-caps over large-caps, prior to COVID-19. From 2003-2019, the Russell 2000 Index climbed 282%, compared to an advance of 233% for the Russell 1000. YTD in 2020, a relatively weak performance by the Russell 2000 has brought the measures more in line. But small-caps can be risky. Large-caps outperformed small-caps in 10 of the 17 years of our test period. Annual returns were negative four times for both, but the average decline for small-caps was 16% in down years versus 12% for large-caps. Yet when small-caps rise, they tend to rise sharply. The average annual gain in positive years was 19% for small-caps, versus 16% for large-caps. Despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate 15% of the U.S. stock market's capitalization is comprised of small- and mid-cap stocks. We target that allocation for our ETF Model Portfolios.

Who let the dogs out? Put another way, who woke up the lagging small- and mid-cap stocks? The bear market devastated those issues, with the Russell 2000 (IWM), the S&P 600 (SML), and the S&P 400 MidCap (MDY) all cratering 44%-45%. It's somewhat amazing that their respective declines were so similar.

U.S. stocks rose modestly on Monday morning after initially opening lower. Fears about the economic effects of the coronavirus continue to unsettle investors, as information about the situation in China is spotty and not considered particularly reliable. Industries doing well today include direct marketing retail, leisure products, and communications equipment. Industries trading lower today include energy equipment and services; oil, gas and consumable fuels; and diversified consumer services. The VIX is down 0.08 to 15.39. The Dow rose 0.3%, the S&P 0.3%, and the Nasdaq 0.5%. Crude oil fell slightly to $50 per barrel, while gold rose $4 to trade near $1578 per ounce.

Purchasing Managers around the globe are a nervous lot. The latest surveys of their intentions indicate the all-important manufacturing sector is either slowing dramatically or contracting. In the U.S., the latest PMI survey, conducted by the Institute for Supply Management (ISM) in November, generated a reading of 48.1. That's below the all-important 50 mark, as anything above 50 implies growth in the manufacturing sector. The index was soaring above 60 just 18 months ago. IHS Markit also surveys purchasing managers in other countries, and they are not much rosier. First the good news: China's manufacturing sector is expanding, given the recent reading of 53.5. Now the bad news: the Eurozone is even weaker than the U.S., with a regional reading of 46.9, while key constituent Germany's latest reading was 43.8 (ugh). In the UK, where uncertainty abounds given the status of Brexit, the current reading of 48.9 also signals contraction. This is the environment in which President Trump is conducting his trade war. If that war winds down, we expect to see global PMI readings once again above the 50 level.