The stock market displayed resilience in the first quarter of 2023 even as earnings forecasts for this year modestly declined. For the  quarter, the S&P 500 Index was up 7.5%. At the beginning of 2023, earnings were expected to grow by low single digits by the end of  the year. Today, 2023 earnings are expected to be down slightly from 2022. Yet, the growth sectors of the economy are dominating like it’s 1999! Year-to-date through 3/31/23, Information Technology is up 22%, Communication Services 21%, and Consumer Discretionary  16%. Megacap growth companies are heavily weighted in these sectors and have led the way with outperformance in the first quarter.  Even a speculative basket First Trust tracks, the 100 stocks with high price-to-sales ratios, modestly outperformed the S&P 500 Index.¹ Defensives and cyclicals are slightly up or modestly lower. Financials is the worst sector down 6% reflecting the current banking tumult.

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¹The 100 stocks with the highest Price/Sales from the universe of the 1,000 largest US firms with at least $1 million in average daily volume over the last 3 months  and 12 months of trading history.