Big Tech Falls Following Sector Rotation

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as big tech falls following sector rotation. 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:

Stock futures open little changed after Netflix earnings miss and its shares tank

U.S. stock futures were flat Thursday night after Netflix’s quarterly report sent the stock tumbling and raised concern about one of the best-performing spaces in the market during the pandemic. Dow Jones Industrial Average and S&P 500 futures traded marginally higher and Nasdaq-100 futures climbed 0.2%.

The S&P 500 (SPY) rose +0.28% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Gains ranged from +2.26% to less than 1%. Losses ranged from -1.40% to less than 1%, check the sector graph for specifics.

The Dow Jones index fell -62 points (-0.23%) to close at 26,671. The Nasdaq added +29 points (+0.28%) to settle at 10,503.

Big Tech Falls Following Sector Rotation

Stocks ended mixed Friday as a drop in Netflix stock after an earnings miss capped big tech gains.

Netflix reported second-quarter earnings that missed analyst expectations, pushing the stock down 6.5%. The company’s weak guidance for third-quarter subscriber growth — a key metric for the streaming giant — also contributed to the steep sell-off in the stock.

Shares of other major tech companies also struggled Friday. Amazon pulled back by 1.2%. Microsoft dipped 0.5% and Apple slid 0.2%.

Netflix’s decline came during a tough week for the major tech names. Facebook, Alphabet and Microsoft were all down week to date. Amazon posted its first weekly decline in 11 weeks, dropping more than 7%. It was also Amazon’s worst one-week performance since the week ending Feb. 28.

Tech’s struggle this week led to a pronounced divergence between the Nasdaq and two other major indexes, the Dow and S&P 500. The S&P 500 and the Dow were up 1.3% and 2.3% this week respectively, posting their third straight weekly gain. However, the tech-heavy Nasdaq fell 1.1% for its first weekly loss in three.

The U.S. reported 77,200 coronavirus cases on Thursday, a record, according to Johns Hopkins University. That spike brought the total number of confirmed U.S. infections to more than 3.57 million. Covid-related deaths are up to more than 138,000.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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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7/17/20

S&P 500 Sector Graph

Big Tech Falls Following Sector Rotation

S&P 500 (SPY)

Big Tech Falls Following Sector Rotation

Communication Services (XLC)

Big Tech Falls Following Sector Rotation

Consumer Discretionary (XLY)

Big Tech Falls Following Sector Rotation

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Consumer Staples (XLP)

Big Tech Falls Following Sector Rotation

Energy (XLE)

Big Tech Falls Following Sector Rotation

Financials (XLF)

Big Tech Falls Following Sector Rotation

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Big Tech Falls Following Sector Rotation

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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