Defensive Sector Trades Unwind

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map. 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, S&P close to all-time records as US futures point to slightly higher open

U.S. stock index futures were higher Friday morning, putting the Dow and S&P 500 on the brink of registering all-time record highs.

The S&P 500 (SPY) fell by -0.07% today. Sector decliners led advancers 7 to 4 as shown below in the sector graph. Real estate (XLRE) -1.20% led decliners down. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), healthcare (XLV), technology (XLK) and utilities (XLU) each suffered small losses of less than 1%. Materials (XLB) led advancers higher with a gain of +1.09%. Energy (XLE), financials (XLF) and industrials (XLI) each enjoyed minor gains of less than 1%.

The Dow Jones index added +37 points (+0.14%) to close at 27,219. The Nasdaq dropped -17 points (-0.22%) to settle at 8,176.

Defensive Sector Trades Unwind

Stocks finished mixed Friday, Dow ending with a 8 day winning streak on progressing US China trade sentiment.

Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management pointed out that so-called defensive sectors, which have been in vogue recently amid trade and recession fears, have unwound this week. Two of those sectors, real estate and consumer staples, were down 3.5% and 0.9%, respectively.

The upbeat sentiment around the trade war pushed the major indexes to their third straight weekly gain. The Dow rose 1.6% week to date while the S&P 500 and Nasdaq both rose about 0.9%.

It also led to a massive sell-off in U.S. sovereign bonds. The benchmark 10-year Treasury yield shot up more than 30 basis points this week, going to around 1.89% from 1.57% earlier in the week.

Key Takeaways…

I took the following CNBC screenshots today regarding cyclicals this week, following the flows, bond funds in September (price wise) 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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S&P 500 Sector Graph

Defensive Sector Trades Unwind

S&P 500 (SPY)

Defensive Sector Trades Unwind

Communication Services (XLC)

Defensive Sector Trades Unwind

Consumer Discretionary (XLY)

Defensive Sector Trades Unwind

Consumer Staples (XLP)

Defensive Sector Trades Unwind

Energy (XLE)

Defensive Sector Trades Unwind

Financials (XLF)

Defensive Sector Trades Unwind

Real Estate (XLRE)

Defensive Sector Trades Unwind

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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