Trade War Concerns Overhead Wall Street Fading

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as trade war concerns overhead Wall Street fading. 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:

US futures set for a tepid open after boost from US-Mexico trade deal

U.S. stock index futures fluctuated ahead of Tuesday’s open, as investors kept an eye on news coming out of the political space. Around 5:00 a.m. ET, Dow futures slipped 7 points, indicating a positive open of 17.36 points, with the S&P 500 and Nasdaq futures pointing to a flat to upbeat start to the day.

The S&P 500 (SPY) inched up by +0.03% today. Sector decliners led advancers by 7 to 5 as shown below in the sector graph. Communication services (XLC), consumer staples (XLP), energy (XLE), financials (XLF), industrials (XLI), materials (XLB) and utilities (XLU) each had small losses of less than 1%. Real estate (XLRE) +1.19% led advancers. Consumer discretionary (XLY), healthcare (XLV) and technology (XLK) each had minor gains of less than 1%.

The Dow Jones index looked flat for the day, only adding +14 points (+0.06%) to close at 26,064. The Nasdaq had a similar result, advancing +12 points (+0.15%) to settle at 8,030.

Trade War Concerns Overhead Wall Street Fading

Stocks closed higher on Tuesday after investor outlook improved following the US Mexico trade deal. When reading the above CNBC article, I found the following quote to describe the current market sentiment, Nicholas Colas, co-founder of DataTrek Research, said in a note the recent breakout is “a function of a baseline assumption (further corporate earnings growth and low rates) and a fresh input (a US Mexico trade deal means other trade/tariff negotiations are also likely).” “Trade has been the biggest overhang on US stocks, so the latter point has some runway to shove large caps even higher in the near term,” he said. The US closed a new trade deal with Mexico on Monday. In addition, in an interview with CNBC on Tuesday Treasury Secretary Steven Mnuchin said he’s hopeful a revamped trade deal will get done soon with Canada. 

Key Takeaways…

I took the following CNBC screenshots this morning regarding rally broadening and keys to the rally:

Trade War Concerns Overhead Wall Street Fading

Trade War Concerns Overhead Wall Street Fading

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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8/28/18

S&P 500 Sector Graph

Trade War Concerns Overhead Wall Street Fading

S&P 500 (SPY)

Trade War Concerns Overhead Wall Street Fading

Communication Services (XLC)

Trade War Concerns Overhead Wall Street Fading

Consumer Discretionary (XLY)

Trade War Concerns Overhead Wall Street Fading

Consumer Staples (XLP)

Trade War Concerns Overhead Wall Street Fading

Energy (XLE)

Trade War Concerns Overhead Wall Street Fading

Financials (XLF)

Trade War Concerns Overhead Wall Street Fading

Real Estate (XLRE)

Trade War Concerns Overhead Wall Street Fading

Healthcare (XLV)

Trade War Concerns Overhead Wall Street Fading

Industrials (XLI)

Trade War Concerns Overhead Wall Street Fading

Materials (XLB)

Trade War Concerns Overhead Wall Street Fading

Technology (XLK)

Trade War Concerns Overhead Wall Street Fading

Utilities (XLU)

Trade War Concerns Overhead Wall Street Fading

S&P 500 Sector Heat Map

Trade War Concerns Overhead Wall Street Fading

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