Earnings Alongside Senate Testimony Drag Stocks Lower

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as earnings alongside Senate testimony drag stocks lower. 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:

Stock futures flat following best day for market in six weeks on vaccine hopes

Stock futures held steady in overnight trading on Monday after the market scored its best day in six weeks on rising optimism about a coronavirus vaccine. Futures on the Dow Jones Industrial Average fell about 30 points, while the S&P 500 futures were flat. The Nasdaq 100 futures were also little changed.

The S&P 500 (SPY) dropped -1.05% today. All 11 sectors finished in negative territory as shown below in the sector graph. Losses ranged from -2.80% to less than 1%, check the sector graph for specifics.

The Dow Jones index fell -390 points (-1.59%) to close at 24,206. The Nasdaq gave back -49 points (-0.54%) to settle at 9,185.

Earnings Alongside Senate Testimony Drag Stocks Lower

Stocks ended in the red Tuesday amid earnings and Senate testimony regarding the economy.

Home Depot shares lost 3% to lead the Dow lower after the home improvement retailer said net income last quarter dropped 10.7% due to extra costs related to the pandemic. Although the retailer also said sales increased by 7% for the period. Walmart shares were down 2.1%, giving up earlier gains, despite soaring e-commerce sales in the first quarter.

Investors turned their attention to Washington as Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee. Their testimony was part of required updates to Congress on the economic response to the coronavirus pandemic.

Mnuchin said the government is “fully prepared to take losses” on coronavirus business bailouts. That testimony comes after Powell told CBS’ “60 Minutes” the central bank still has plenty of ammunition to support the economy.

Tuesday’s action followed a strong rally on Wall Street that saw the Dow and S&P 500 both enjoy their biggest one-day gains since April 6. Investors cheered news that an experimental coronavirus vaccine from Moderna showed promising early signs. The 30-stock Dow jumped more than 900 points, while the S&P 500 closed the day up 3.2%, hitting its highest level since March 6.

Key Takeaways…

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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5/19/20

S&P 500 Sector Graph

Earnings Alongside Senate Testimony Drag Stocks Lower

S&P 500 (SPY)

Earnings Alongside Senate Testimony Drag Stocks Lower

Communication Services (XLC)

Earnings Alongside Senate Testimony Drag Stocks Lower

Consumer Discretionary (XLY)

Earnings Alongside Senate Testimony Drag Stocks Lower

Consumer Staples (XLP)

Earnings Alongside Senate Testimony Drag Stocks Lower

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Energy (XLE)

Earnings Alongside Senate Testimony Drag Stocks Lower

Financials (XLF)

Earnings Alongside Senate Testimony Drag Stocks Lower

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Earnings Alongside Senate Testimony Drag Stocks Lower

Utilities (XLU)

S&P 500 Sector Heat Map

 

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