One simple reason explains the narrow range of US indices

US stocks have been "stuck" in a narrow range in recent weeks, and the key reason behind this is very simple - there is no leader to follow.
This happens relatively rarely in the stock - lacking unambiguous leaders to keep the whole market up. Compared to the past year when these were technological shares, this year's situation is completely different.
Markets experience relatively similar periods of lack of leadership, said Michael Wilson, market strategist at Morgan Stanley.
Since the beginning of the year, the S&P 500 has declined by 0.21%, while the blue chip Dow Jones Industrial Average lost 1.6%. At the same time, the Nasdaq technology is up 2.5%.
The sectors are mainly traded downward, with only three of the 11 major sectors on the positive territory for the year.
The best-performing sector is the consumer cycle, adding 5.5% to its value this year. This, however, is predetermined by the strong performance of several names. For example, Amazon.com, which accounts for around 20% of the sector, has increased its market capitalization by nearly 34% this year.
Shares of Netflix Inc. - the fifth largest component in the sector, rose by more than 63% since the beginning of the year. Other names, like Home Depot HD and Walt Disney, have been in negative territory since the beginning of the year.
For the market as a whole, the lack of a sector to lead growth is also a "worrying signal" by itself.
Analysts comment that such periods occur in times of transition from a growing market to a market that has found its peak or is about to find it. The situation is further compounded by interest rates on 10-year US bonds, which rose by more than 3%, and by expectations of main interest rates hike.
There are some signs that the energy sector may become a market leader. It has grown by 9.5% since the beginning of the month, which is the best performance among the 11 major sectors of the broad US index.

Two companies that can beat Apple on the way to $1 trillion (2)

Amazon.com, Inc. (AMZN)
This is the company with the best chance to beat Apple on the way to a $1 trillion.
First of all, because Amazon's capitalization of $690 billion is not far from the $1,000 billion.
Secondly, Amazon's growth is far ahead of Apple. Company revenue grew by nearly 40 percent, while Apple's revenue rose 13 percent in the past quarter. Amazon's profit rose more than two times in the past quarter on an annual basis, while Apple rose 16%.
In addition, Amazon shares are rising in value much faster than Apple's. Over the past three years, the stock of the retail chain has risen by 300%, against a 40% growth in Apple shares.
Last but not least, Amazon is still in the phase of accelerated growth of its business, at Apple's expense.
Put it another way, if someone goes ahead of Apple on the way to $1 trillion, then it's very likely to be Amazon.

Alphabet Inc (GOOG)
Outside of Amazon, the other company that has a good chance of overtaking Apple's leading position is Alphabet Inc.
Like Amazon, Google is not much farther from Apple in terms of market capitalization. The latter amounts to 720 billion dollars.
And just like Amazon, Google is growing much faster than Apple. Google's revenue growth is 24%, compared to 13% growth for Apple. Google's profit rose 28%, compared to 16% for Apple.

Shock sale for US indices - Dow loses more than 660 points

Yesterday was extremely heavy for investors on US stock markets. The blue-chip index Dow Jones Industrial Average lost the devilish 666 points in its largest decline since June 2016.
The broad S&P 500 Index fell 2.1 percent to 2 761.91 points, or its lowest level since January 10. The European Stoxx Europe 600 reduced its value by 1.4%, bringing its weekly loss to 3.1%.
The rise in interest rates on US bonds, owing to expectations of further interest rates in the world's largest economy, largely predetermined the decline.
Investors had no place to hide in the stock market, as the 11 major sectors of the S&P 500 index declined. The five-day fall in the broad index took 3.9% of its value, the first such drop from a record 404 days. Energy companies lost 4.1% after the results of companies in the sector continue to disappoint, the price of oil has fallen.
Sales of technology companies declined, with the Nasdaq 100 Index down 2.1%. For the week, the index fell by 3.7%, or the most since February of 2006. Even the record price appreciation of Amazon.com Inc. could not soften the indicator's cut. It's at its lowest levels since October.

Doug Kass: We are ready for a serious correction

The big investor Doug Kass, expressed his opinion on the market, in a unique way.
"At the risk of sounding stupid (and mistaken), I do not like the market and its movement," said Kass in a statement.
A serious imbalance in closing markets last week, coupled with a forthcoming holiday and early month, triggered a late recovery of US indices and new records, Kass commented.
In case of serious instability of the FANG group companies, I position myself aggressively for a market correction - something that few investors and experts even think possible.
Last week, Kass raised serious questions about the letters "A" and "N" in the so-called FANG group. That is to the shares of Amazon and Netflix. The first reached new historical records at levels already above $1,000 at the beginning of the new week.
Surviving the previous technological boom and shortening technology companies during the "Internet bubble," in the late 1990s, Cass definitely believed he had "watched this movie before".
Analyzing the current situation causes Kass to believe that all investors, with the exception of "older fools," may be misled by the current trend of forming a "speculative bubble."
Kass believes that companies such as Facebook and Alphabet, given their prospects of good future growth, can not be considered expensive, although they would be limited to buying them at their current levels.
The expert predicts a 30% increase in profits before taxes and fees over the next few years. For Google, the forecast is for a 15% growth per year. What is more important, according to Kass, is that both companies generate stable cash inflows.
With regard to Amazon and Netflix, however, ratings are quite another. Kass said he would have avoided both companies.

Here's how much you would have had if you invested $1,000 in the Amazon IPO

On May 15, exactly 20 years ago, Amazon's initial public offering took place. The company became public as an online book seller, which was only three years old.
Perhaps no one, however, expected the company's share growth of about 50,000% over the next twenty years. In other words, $1,000 invested in its shares on the first day after the IPO at a closing price would be over $491,000 to the current date if they are still held.
This kind of profit overcomes even registered, by great investors like Warren Buffett.
There is a peculiarity of course. Having held the company's shares throughout those years required iron discipline. Because they had a drop period on average 36% of their highest value each year over the past twenty years.
To a large extent, Amazon's success lies in its cloud-based business, as well as the expansion of its major trading business, which has led to bankruptcy, to many traditional retail chains.

Good results from Amazon and Alphabet

The US indices and the dollar remained unchanged on Thursday, in expectation of the key news about the growth of the US economy on Friday.
The S&P 500 is trading very close to its historic peak, and whether it will be overcome will depend on its medium-term movement.
Reported good results from US companies have helped the technological Nasdaq to rise to a new historic record.
After the good results, Amazon.com's shares rose to a new historic record at the OTC session, where they added nearly 5% of their value. The company posted sales growth of 23 percent to $35.7 billion, which exceeded analysts' average expectations of $35.2 billion.
The market capitalization of the company is approaching the psychological limit of $200 billion.
After the good results, a growth of nearly 4% recorded also Alphabet Inc. The company's profit has risen by 29% over the past quarter and shows no signs of slowing pace.