If you were to use the 6.74% annual earnings growth rate, earnings per share would be $101.45. Considering the most recent close of 1403.36, the S&P 500 would have to rise 20% to hit its historical earnings multiple at current prices, Ploutos added.
Within the S&P 500, the SPDR Technology Select Sector Fund ETF (NSYEArca: XLK), which is up 17.5% year-to-date, and SPDR Financial Select Sector Fund ETF (NSYEArca: XLF), which is up 19.1%, are leading the market. Meanwhile, the SPDR Utilities Select Sector Fund ETF (NSYEArca: XLU) brings up the rear, remaining unchanged year-to-date.
SPDR S&P 500
For more information on the overall market, visit our S&P 500 category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.