Data: FactSet; Chart: Axios Visuals

In addition to largely ignoring economic data, the stock market's rally is defying cratering earnings per share estimates.

By the numbers: During the first five months of 2020 the bottom-up earnings per share estimate for S&P 500 companies — an aggregation of the median 2020 EPS estimates for all the companies in the index from FactSet — has fallen by 28% (to $128.03 from $177.82).

  • That's the lowest EPS estimates have been in the history of FactSet's data, which goes back to 1992.
  • During the past five years, the average decline in the annual EPS estimate during the first five months of a year has been 1.3%, and for the past 20 years, the average decline for the first five months of a year has been 2.4%.

What's happening: "The market is broken," Joe Brusuelas, chief economist at RSM International, said in an interview with CNN Business.

  • "It no longer reflects a forward outlook that is truly aligned in the real economy," he said. "That's a problem because, at some point, the public will say these markets are rigged."

On the other side: Barry Knapp, managing partner at Ironsides Macroeconomics, argues that valuations are simply useless in the current climate.

  • “It’s the beginning of a new business cycle. You shouldn’t get all beared up, and you’re not supposed to focus on valuations," he told CNBC. "This is the early stage of the business cycle."

Go deeper: Pandemic and protests can't stop the stock market

Go deeper

Consumer confidence notches its first decline since March

Data: Hamilton Place Strategies and CivicScience; Chart: Axios Visuals

Consumer confidence had its first major decline since March 31 as a new round of coronavirus cases have spiked, according to the HPS-CivicScience Economic Sentiment Index.

By the numbers: Consumer confidence fell 1.3 points to 47.8. The index's previous reading showed a record increase in confidence in finding a new job and the overall U.S. economy, but both indicators fell — dropping by 2.4 and 2.5 points, respectively — in the latest survey. Confidence in making a major purchase also declined by 1.5 points. ESI's two other indicators, confidence in the housing market and confidence in personal finances, were flat.

How the pandemic will reshape the job market

Illustration: Eniola Odetunde/Axios

A shock to the job market as massive and as sustained as the coronavirus will leave lasting change — and damage — in its wake.

The big picture: We jumped from the best labor market in 60 years, before the coronavirus, to the worst, in April. As the country comes back, millions of jobs lost during the pandemic will never come back, and there will be massive reallocations of jobs from some parts of the economy to others.

How the Robinhood effect is moving the stock market

Reproduced from BCA Research using Bloomberg data; Table: Axios Visuals

A report from BCA Research published Monday finds Robinhood users are moving into speculative bets at an incredible rate, radically increasing holdings in three groups of stocks — airlines, cruise ships and mortgage REITs.

What's happening: "Retail investors have provided institutions with an opportunity to exit stocks in the three stressed groups," Doug Peta, BCA's chief U.S. investment strategist, writes in the note.