Since April 21 (or since the secondary market low and eight days after "the" closing low of the correction in the major indices), stocks have enjoyed a massive and consistent tailwind. The S&P 500 (SPX) has risen in 16 out of 19 trade days, and the three daily losses were inconsequential. Since the April 8 bottom, the SPX has soared 19.6% in 27 days, the Nasdaq has surged 26%, and the Nasdaq 100 (QQQ) has popped 25%. That performance is the best since, and very reminiscent of, the pandemic. As well, those 27-day returns (ex. the pandemic) are the best since April 2009, when stocks were coming out of the financial crisis. With this kind of steady and persistent rally pushing the SPX to within 3% of its February 19 all-time high, the Nasdaq to within 5% of its December 16 all-time high, and the QQQ to within 3.3% of its February 19 all-time high, one would expect the investment masses to be pushing the "very bullish" sentiment button. Indeed, they almost always have in the past, as sentiment follows price. But that is not the case with this rally, although some indicators are finally pushing to extreme bullish levels. The five-day CBOE equity-only put/call (PC) ratio has dropped to 0.48 from 0.73 on April 8, the lowest and most-overheated P/C since July 2023, just before the July through August pullback. Hedge fund exposure and the NAAIM Exposure Index have not reached extreme levels, consumer confidence has hit its lowest level since the pandemic, and, within the consumer-sentiment survey, more participants believe stocks will move lower. (Mark Arbeter, CMT)

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

McDonald's is the world's largest restaurant chain, with more than 40,000 fast-food restaurants in over 100 countries. With a market capitalization above $227 billion, MCD is a large-cap growth stock.

Stocks are up at midday on Thursday. President Trump announced that the U.S. and the UK have made an agreement on trade. Trade representatives from the U.S. and China are also slated to meet this weekend to work out trade terms. No surprise from the Fed yesterday. It left interest rates unchanged as expected. Chairman Powell says the Fed has a lack of clarity for the economy ahead. The yield on the 10-year Treasury note is 4.32%. Oil is at $59 per barrel.