Market Review
February 4, 2023
C3.ai Inc
AI at $25.88 (45.64%)
Nordstrom Inc
JWN at $26.38 (43.21%)
Hovnanian Enterprises Inc
HOV at $71.47 (27.6%)
MicroSectors™ US Big Oil 3X Lvrgd ETN
NRGU at $442.44 (-22.33%)
Bill.com Holdings Inc
BILL at $94.51 (-21.18%)
MicroSectors™ Gold Miners 3X Lvrgd ETN
GDXU at $46.84 (-18.57%)
VIX
Chart for VIX
The VIX figure is 18.33. This is 4.1% above the historic median figure of 17.60.
The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Historically, VIX levels above 50 correlate closely with periods of stock market panic while VIX levels below 20 are more typical during relatively calm periods in the market.
SKEW
Chart for SKEW
The SKEW figure is 123.88. This is 3.8% above the historic median figure of 119.34. A SKEW number above 140 is a warning sign that tail-risk, or the risk of an unexpected decline in share prices, is higher. When you see a SKEW of 140, watch out because a correction may take place!
Total Market Cap / GDP
Chart for Total Market Cap / GDP
The ratio of the Total Market Capitalization (Wilshire 5000) to United States GDP is 1.6008. This is 58.6% above the historic median figure of 1.01.
The higher the Market Cap/GDP figure is relative to its median level, the higher the perceived risk in the market. Markets can remain overvalued for extended time periods.
S&P 500 Price/Earnings Ratio
Chart for S&P 500 Price/Earnings Ratio
The S&P 500 Price/Earnings Ratio is 19.17. This is 12.5% below the historic median figure of 21.90.
The higher the Price/Earnings ratio figure is above the median, the more overvalued the market is considered to be when earnings are positive. If earnings are negative for the market, this indicator is not as valuable.
S&P 500 Earnings Yield
Chart for S&P 500 Earnings Yield
The S&P 500 Earnings Yield is 5.22. This is 14.2% above the historic median figure of 4.57.
When the S&P Earnings Yield is lower than the median, the market is considered less attractive from a valuation perspective (assuming positive S&P Earnings).