Possible US China Trade Discussion Sparks Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as possible US China trade discussion sparks rally. 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:

Dow rises more than 100 points after report Trump and Xi hope to discuss trade in November

Michael Nagle | Bloomberg | Getty Images Dubravko Lakos-Bujas, J.P. Morgan’s head of U.S. equity strategy, told CNBC’s ” Halftime Report” on Friday that he remains confident the S&P 500 will reach his year-end target of 3,000. “The only thing that’s basically keeping us from getting there at this point is the trade and the geopolitical risks,” Lakos-Bujas said.

THE S&P 500 (SPY) added +0.33% today. Sector advancers led decliners 11 to 1. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE), healthcare (XLV), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each had small gains of less than 1%. Communication services (XLC) had a minor loss of less than 1%.

The Dow Jones index jumped +110 points (+0.43%) to close at 25,669. The Nasdaq inched up +9 points (+0.13%) to settle at 7,816.

Possible US China Trade Discussion Sparks Rally

Stocks jumped higher on Friday after a report said President Trump and Chinese leader Xi hope to meet in November to discuss trade. I found the following quote from the above CNBC article regarding market sentiment about trade, “If you take the possibility of a trade war with China off the table for a few months that allows the market to work its way higher,” said Ed Keon, chief investment strategist at QMA. “This has been one of the market’s biggest worries. If you put it on the back burner, it’s a good thing.” The report comes a day after NEC Director Larry Kudlow said the two countries would resume trade negotiations later this month.   President Trump pushed for the end of quarterly earnings on Friday instead promoting earnings every six months.

Key Takeaways…

I took the following CNBC screenshots this morning regarding stocks: where we stand and ending quarterly reports:

Possible US China Trade Discussion Sparks Rally

Possible US China Trade Discussion Sparks Rally

Notable S&P Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

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.

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8/17/18

S&P 500 Sector Graph

Possible US China Trade Discussion Sparks Rally

S&P 500 (SPY)

Possible US China Trade Discussion Sparks Rally

Communication Services (XLC)

Possible US China Trade Discussion Sparks Rally

Consumer Discretionary (XLY)

Possible US China Trade Discussion Sparks Rally

Consumer Staples (XLP)

Possible US China Trade Discussion Sparks Rally

Energy (XLE)

Possible US China Trade Discussion Sparks Rally

Financials (XLF)

Possible US China Trade Discussion Sparks Rally

Real Estate (XLRE)

Possible US China Trade Discussion Sparks Rally

Healthcare (XLV)

Possible US China Trade Discussion Sparks Rally

Industrials (XLI)

Possible US China Trade Discussion Sparks Rally

Materials (XLB)

Possible US China Trade Discussion Sparks Rally

Technology (XLK)

Possible US China Trade Discussion Sparks Rally

Utilities (XLU)

Possible US China Trade Discussion Sparks Rally

S&P 500 Sector Heat Map

Possible US China Trade Discussion Sparks Rally

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