Market Digest: NFLX, RL

Summary

Insiders seem to be in ‘maintenance mode’ and are throwing off little in the way of actionable market signals. There’s no broad buying and no broad selling. That reflects a stock pickers market, as investors seek out specific opportunities while being mindful of the multiple challenges making headlines these days. Seemingly supporting this view, Argus’ Director of Research, Jim Kelleher, CFA, has titled his weekly economic commentary ‘Uneasy Calm at Mid-Year.’ In the piece, Jim noted the following. ‘Both business leaders and consumers are uneasy about the months ahead, given clear signs of slowing consumer spending, still-soft purchasing managers’ sentiment, and the pending elections. Technically, the stock market appears overdue for a shakeout.’ Still, he added, ‘It’s not all doom and gloom. The upcoming earnings season is likely to be the best in at least two years. Accelerating earnings growth is preventing the market from stretching into deep overvaluation territory even as stocks repeatedly hit new highs. Although economic activity may have slowed from 2022-2023 levels, stabilization in global supply chains means the U.S. economy may be sending signals that are more accurate and operating at a more sustainable level of activity. And notably, recent inflation data (CPI and PPI) finally showed improvement from recently stalled levels.’ On a sector basis, selling by insiders last week was greatest in Healthcare, with shares val