Current Market Offers Repositioning Opportunity

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the current market offers repositioning 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 futures drop more than 400 points as Wall Street gives back some of last week’s gains

U.S. stock futures opened loweron Sunday night following sharp gains last week while the number of coronavirus cases in the U.S. keeps rising at an alarming rate. Dow Jones Industrial Average futures fell more than 400 points at the open, or about 2%. S&P 500 and Nasdaq 100 futures were both down more than 1%.

The S&P 500 (SPY) rose +3.35% today. All 11 sectors landed in positive territory by at least 1% as shown below in the sector graph. Gains ranged from +1% to more than 4%, check sector graph for specifics.

The Dow Jones index added +690 points (+3.19%) to close at 22,327. The Nasdaq jumped +271 points (3.62%) to settle at 7,774.

 Current Market Offers Repositioning Opportunity

Stocks continued their recent rebound from the coronavirus lows.

Investors embraced a more realistic government approach to contain the pandemic. President Donald Trump extended the timeline for social distancing guidelines to April 30, which many believe will reduce economic damage in the long run.

Stocks also built on last week’s historic rally, where the Dow and S&P 500 posted their best three-day win streaks since the 1930s. With Monday’s gains, the Dow is now up 20% from its coronavirus sell-off low reached on March 23 while the S&P 500 has risen more than 17% from those levels.

Still, the consensus on Wall Street calls for more selling before the market can hit a bottom. Historically, Bear markets are often punctuated by sharp bounces on their way down to a trough.

Investors continued to grapple with the worsening outbreak in the U.S. as the confirmed cases rose to more than 153,200, according to data from Johns Hopkins University. The U.S. has also officially become the country most affected. Trump said Sunday he hopes the country will “be well on our way to recovery” by June 1.

Key Takeaways…

Allianz’s El-Erian: Markets present an opportunity for repositioning

Mohamed El-Erian, chief economic advisor at Allianz, joins “Squawk Box” by phone to discuss the markets as well as the Fed action to try to lift the economy amid the coronavirus-driven slowdown.

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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3/30/20

S&P 500 Sector Graph

Current Market Offers Repositioning Opportunity

S&P 500 (SPY)

Current Market Offers Repositioning Opportunity

Communication Services (XLC)

Current Market Offers Repositioning Opportunity

Consumer Discretionary (XLY)

Current Market Offers Repositioning Opportunity

Consumer Staples (XLP)

Current Market Offers Repositioning Opportunity

Energy (XLE)

Current Market Offers Repositioning Opportunity

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

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).

Financials (XLF)

Real Estate (XLRE)

Current Market Offers Repositioning Opportunity

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

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.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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