Coronavirus Provides Profit Taking Opportunity

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the coronavirus provides profit taking opportunity. 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:

Dow posts worst day since October and turns negative for the year as coronavirus fears grow

Stocks tanked on Monday after more cases of the coronavirus were confirmed over the weekend, ratcheting up worries over the virus’ impact on the world economy. The Dow Jones Industrial Average fell 453.93 points, or 1.6% to 28,535.80, wiping out the average’s gains for the year.

The S&P 500 (SPY) dropped -1.57% today. All 11 sectors fell in negative territory as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), energy (XLE), financials (XLF), industrials (XLI), materials (XLB) and technology (XLK) each had losses of over 1%. Consumer staples (XLP), healthcare (XLV), real estate (XLRE) and utilities (XLU) each suffered minor losses of less than 1%.

The Dow Jones index lost -453 points (-1.57%) to close at 28,535. The Nasdaq fell -175 points (-1.89%) to settle at 9,139.

Coronavirus Provides Profit Taking Opportunity

Stocks landed in the red Monday as the Coronavirus provides a profit taking opportunity.

There are 2,862 confirmed cases so far in China and the death toll in China has risen to 81. The World Health Organization’s director general is traveling to China to meet with government and health officials. In the U.S., a fifth case of coronavirus was confirmed over the weekend.

“China is the biggest driver of global growth so this couldn’t have started in a worse place,” said Alec Young, managing director of global markets research at FTSE Russell. “Markets hate uncertainty, and the coronavirus is the ultimate uncertainty in that no one knows how badly it will impact the global economy.”

Key Takeaways…

I took the following CNBC screenshots today regarding earnings this week and 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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1/27/20

S&P 500 Sector Graph

Coronavirus Provides Profit Taking Opportunity

S&P 500 (SPY)

Coronavirus Provides Profit Taking Opportunity

Communication Services (XLC)

Coronavirus Provides Profit Taking Opportunity

Consumer Discretionary (XLY)

Coronavirus Provides Profit Taking Opportunity

Consumer Staples (XLP)

Coronavirus Provides Profit Taking Opportunity

Energy (XLE)

Coronavirus Provides Profit Taking Opportunity

Financials (XLF)

Coronavirus Provides Profit Taking Opportunity

Real Estate (XLRE)

Coronavirus Provides Profit Taking Opportunity

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

 

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