Financials Plus Tax Reform Framework Buoy Stocks
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after financials plus tax reform framework buoy stocks. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:
The S&P 500 (SPY) jumped 0.41% today, as financials plus tax reform framework buoy stocks. S&P sector advancers led decliners by 6 to 4. Leading the charge for the advancers was financials (XLF) +1.22% and technology (XLK) +1.02%. Consumer discretionary (XLY), energy (XLE), industrials (XLI) and materials (XLB) gained less than 1% on the day. Utilities (XLU), -1.34%, took it on the chin and led decliners. Consumer staples (XLP), healthcare (XLV), and real estate (XLRE) were negative less than 1%.
The Dow Jones index gained 56 points closing at 22,340. The Nasdaq surged 73 points finishing at 6,453.
The main focal point from today’s session was the Republican Tax Reform Framework, which was released today and would reduce the corporate tax rate to 20%. Tax reform could significantly boost profits for companies — especially financials and small caps.
Some bright spots and standouts from today’s action included major banks (JPM, BAC, C, GS and MS) all jumping more than 1% on the hopes of tax reform and a rising rate environment. Big tech also found a bid today with Google (GOOGL) and Facebook (FB) rising more than 1%. Utilities (XLU) slipped 1.34% today, as investors used the sector as an ATM on such a bullish day.
Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.
S&P 500 Sector Graph
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map