Stocks Are Acting a Bit Tired

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Our View

It's only May 8th and it feels like the dog days of summer, which typically signals a slowdown in market activity. It's unclear whether this is due to people cutting back or just holding positions. 

According to FactSet, the majority of companies have so far been beating forecasts for earnings, but they’re not getting as big a boost to their stock prices afterward as they usually do, and companies that fall short of profit expectations have seen their stock prices sink by more the following day than they have historically. Either way, the last two sessions have seen very narrow ranges and extremely low volumes.