Better Than Expected Showing Economic Strength

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as better than expected showing economic strength. 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 point to slightly higher open

U.S. stock index futures were slightly higher Monday morning, as investors prepared for the busiest week of earnings season.

The S&P 500 (SPY) added +0.56% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Technology (XLK) and healthcare (XLV) led advancers higher, each with gains of more than 1%. Communication services (XLC), consumer discretionary (XLY), financials (XLF), industrials (XLI) and materials (XLB) each had small gains of less than 1%. Real estate (XLRE) and utilities (XLU) led decliners down, each with losses of more than 1%. Consumer staples (XLP) and energy (XLE) each had minor losses of less than 1%.

The Dow Jones index climbed +132 points (+0.49%) to close at 27,090. The Nasdaq advanced +82 points (+1.01%) to settle at 8,325.

Better Than Expected Showing Economic Strength

The S&P 500 reached a record high Monday as stronger than expected leads market higher.

“The market is sending you a very strong message: The cyclical stocks are recovering and they are outperforming,” said Andrew Slimmon, managing director at Morgan Stanley Investment Management. “If the economy was going to hit a really bad patch, these stocks wouldn’t be recovering.”

“The market is finally breaking out of this trading range and it is headed higher,” he said. “The economic data has been better than expected. Earnings have come in better than expected.”

Microsoft shares contributed to Monday’s gains, rising 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020. Alphabet climbed nearly 2% ahead of earnings, but the stock slipped in after-hours trading after the company’s results were released.

Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement.

Chinese state-run news agency Xinhua also pointed to progress being made on trade. The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Key Takeaway…

I took the following CNBC screenshot today regarding driving the action:

Notable S&P 500 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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10/28/19

S&P 500 Sector Graph

Better Than Expected Showing Economic Strength

S&P 500 (SPY)

Better Than Expected Showing Economic Strength

Communication Services (XLC)

Better Than Expected Showing Economic Strength

Consumer Discretionary (XLY)

Better Than Expected Showing Economic Strength

Consumer Staples (XLP)

Better Than Expected Showing Economic Strength

Energy (XLE)

Better Than Expected Showing Economic Strength

Financials (XLF)

Better Than Expected Showing Economic Strength

Real Estate (XLRE)

Better Than Expected Showing Economic Strength

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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