U.S. blue chip stocks are sitting at levels not seen since late 2007 and within sight of fresh five-year highs after the Dow Jones Industrial Average (INDEX: ^DJI) extended its winning streak to six weeks. However, a rising tide isn't lifting all boats equally. A look at the S&P 500 (INDEX: ^GSPC) by Bespoke Investment Group shows that the number of components making new 52-week highs has been declining, despite the current rally bringing the index to levels not seen in years. The data indicates a relative lack of "participation" by small-cap stocks in the rally, which is weighted by market capitalization.
Home Depot (NYSE: HD) is one of the large-cap stocks that hit a new 52-week high last week. That's not the case, however, for home improvement competitor Lowe's (NYSE: LOW), which reported earnings this morning. The average observer might expect earnings from Lowe's to mirror Dow component Home Depot's better-than-expected report from last week, but that hasn't been the case lately. The company has underperformed consistently since the beginning of 2009, with same-store sales at Lowe's trailing Home Depot by an average of 1.8% per quarter. That continued today when Lowe's posted a same-store sales decline and lowered its full-year outlook. That underperformance and the resulting market share losses are reflected in the company's share price, which is up only 24% since the beginning of 2009, versus 141% for Home Depot.
Another of those big S&P stocks leading the charge higher is Apple (Nasdaq: AAPL), which reached all-time highs in Friday's trading. The move to $648.11 comes ahead of a key event scheduled for Sept. 12: the unveiling of the newest iPhone. Sentiment has also improved due to reports about the company's entry into the TV or set-top box business, but the more likely bonus announcement on Sept. 12 would be a new iPad model. The "iPad Mini," as it has come to be known, will sell at a lower price more competitive with tablets from the likes of Google and Amazon.
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