Boeing Leads Investor Profit Taking
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after Boeing leads investor profit taking. 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:
U.S. stocks opened mixed on Wednesday as another batch of corporate earnings reports hit the tape. Dow-component Boeing posted better-than-expected earnings and sales. The company also raised its full-year guidance. The stock traded about half a percent lower in the premarket, however.
The S&P 500 gave back 0.47% today as Boeing leads investor profit taking. S&P sector decliners led advancers by 10 to 0. There was profit taking across all sectors but none fell 1% or more.
The Dow Jones index tumbled down 112-points falling to 23,329. The Nasdaq slipped 34-points closing at 6,563.
The main focal points from today’s session was Boeing’s quarterly report and rising bond yields quiet sentiment on equities. The aerospace giant revealed that it saw declining revenue in two of its businesses due to production problems related to its aerial refueling tanker. The yield on the US 10-year bond rose to 2.4%. Rising bond yields often throw cold water on sentiment towards equities.
The bright spots and standouts from today’s action included Visa (V) gaining 1% on a very strong earnings report, as profits rose 11% in the 4th quarter. Telecoms AT&T (T) and Verizon (VZ) both turned in negative days. AT&T fell on a bad quarterly earnings report and Verizon fell due to being in the same sector. Telecoms often sell off in rising bond yield environments, as investors ditch high dividend equities in favor of rising bond yields.
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