Buy The Dip Mentality Still Lives
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the buy the dip mentality still lives. 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. stock futures held steady on Monday night after the market kicked off the week with a broad-based rally. Futures tied to the Nasdaq 100 rose 0.1%, while those for the Dow Jones Industrial Average and S&P 500 were flat. The move in futures follows a bounce-back session for Wall Street on Monday.
The S&P 500 (SPY) rose +0.52% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Gains ranged from +1.78% to less than 1%. Losses ranged from -1.36% to less than 1%.
The Dow Jones index added +2 points (+0.01%) to close at 27,995. The Nasdaq climbed +133 points (+1.21%) to settle at 11,190.
Buy The Dip Mentality Still Lives
Stocks lose steam in the final hour of trade by still finish higher.
Microsoft jumped 1.6%. Amazon and Alphabet each rose 1.7%. Netflix gained 4.1% and Facebook closed higher by 2.4%. Tesla shares, meanwhile, popped 7.2% after surging more than 12% on Monday. Tuesday marked the second straight solid performance for Big Tech after the group’s sharp sell-off last week, which pressured the broader market.
“The market is doing its best to prove that buying the dip still is in vogue,” said Frank Cappelleri, executive director at Instinet. “The bottom line is that the market continues to have broad participation And that’s the most crucial characteristic to maintain going forward.”
Tuesday’s gains came after a the major averages popped more than 1% on Monday, boosted by a slew of dealmaking activity and a rally in tech stocks. Hopes around a potential coronavirus vaccine also lifted sentiment on Monday.
While committed to keeping interest rates low for the next several years, the Federal Reserve still has plenty of work to do as it steers the U.S. economy through the pandemic. As central bank officials gather Tuesday and Wednesday for their policy meeting, a number of items are on the agenda, even as the mystery of where rates are headed has disappeared.
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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S&P 500 Sector Graph
Communication Services (XLC)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).
Real Estate (XLRE)
Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.
Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.
S&P 500 Sector Heat Map