The consistent trend of higher yields across the entire curve starting on April 1 (with the S&P 500 closing high on March 28) has kept pressure on the stock market. On Tuesday, the two-year, five-year, and 10-year Treasury yields all hit recovery highs off their lows since late 2023/early 2024 and are not far from major highs hit in October 2023.

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.

We have talked about the weekly winning streaks of the major indices. As of Friday, most were 17 for 21 -- or winners 81% of the time. During that same time, the S&P 500 (SPX) jumped 27% and the Nasdaq and the Nasdaq 100 popped 30%. In sports, going 17/21 is about as good as it gets (although field goal kickers are sometimes better). One might expect a pullback (certainly possible), a correction, or something more dramatic after a run like this. But history is on the side of the bulls.

Celestica, formerly a captive manufacturing division of IBM, became a separate electronic manufacturing services (EMS) company in 1996. Celestica provides end-to-end product lifecycle solutions for a range of technology markets, including communications, servers, storage, and consumer electronics. It also serves diversified nontechnology markets, including industrial, automotive, capital equipment, and medical. Based in Toronto, the company has over 23,000 employees.