Continuation of the Rise in Optimism
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as market sees the continuation of the rise in optimism. 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 rose on Friday morning as traders wrapped up a strong week amid decreasing political uncertainty and positive vaccine news. Dow Jones Industrial Average futures traded higher by 55 points, or 0.2%. S&P 500 futures also gained 0.2% and Nasdaq 100 futures advanced 0.4%. The market closes at 1 p.m.
The S&P 500 (SPY) rose +0.24% today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Losses ranged from -1.17% to less than 1%. There were 5 sectors that had minor gains of less than 1%, check the sector graph for specifics.
The Dow Jones index added +37 points (+0.13%) to close at 29,910. The Nasdaq jumped +111 points (+0.92%) to settle at 12,205.
Continuation of the Rise in Optimism
Stocks gained ground on Friday as less political uncertainty coupled with positive vaccine news has given investors confidence in this market.
“What we’re witnessing today, this week and this month, is a continuation in the rise of optimism,” said Mike Zigmont, head of trading and research at Harvest Volatility Management. “The environment for risk assets has been getting better and better” as drugmakers release more positive Covid-19 vaccine data and the risks on the political front ease.
Retailers led the early gains as investors bet on a strong holiday shopping season. The SPDR S&P Retail ETF (XRT) rose 0.9% and hit an all-time high. Etsy shares popped 10.7%, and Gamestop advanced 9%. Amazon shares gained 0.3%, and Shopify climbed 1.5% after Adobe Analytics said Thanksgiving Day online sales rose to a record $5.1 billion.
Also helping sentiment were comments from President Donald Trump, who said he would leave the White House if the Electoral College votes for President-elect Joe Biden.
Friday’s gains added to the market’s surge this month, which was sparked in part by a slew of positive coronavirus vaccine trial data.
Earlier In November, Pfizer and BioNTech said their vaccine was more than 90% effective. Moderna also said its drug was highly effective in a trial.
That data helped push the Dow up 12.9% in November, putting it on track for its biggest monthly gain since January 1987. The S&P 500 and Nasdaq are up 11.3% and 11.9%, respectively, in November. Meanwhile, the small-cap Russell 2000 is on track for its best month ever, up about 20%.
Jeremy Siegel, finance professor at the University of Pennsylvania’s Wharton School, breaks down three major factors that he says are really supporting the market and could have contributed to the Dow hitting 30,000.
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
S&P 500 (SPY)
Communication Services (XLC)
Consumer Discretionary (XLY)
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).
Consumer Staples (XLP)
Real Estate (XLRE)
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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