Earnings Alongside Trade Bring New Highs

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as earnings alongside trade bring new highs. 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:

US futures point to a higher open

U.S. stock index futures were higher Monday morning.

The S&P 500 (SPY) added +0.37% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Energy (XLE) led advancers higher with a gain of +3.26%. Communication services (XLC), consumer discretionary (XLY), financials (XLF), industrials (XLI), materials (XLB) and technology (XLK) each had minor gains of less than 1%. Consumer staples (XLP), healthcare (XLV), real estate (XLRE) and utilities (XLU) each had small losses of less than 1%.

The Dow Jones index climbed +114 points (+0.42%) to close at 27,462. The Nasdaq jumped +46 points (+0.56%) to settle at 8,433.

Earnings Alongside Trade Bring New Highs

All 3 major averages reached record highs Monday as earnings alongside trade raise investor outlook.

Monday’s rise brought the Dow’s year-to-date gain to nearly 18%. That would be the biggest one-year gain for the Dow since 2017, when it jumped 28.2%. The S&P 500 is up more than 22% for 2019 and is on pace for its biggest one-year gain since 2013, when it rallied nearly 30%. The Nasdaq is also up more than 27% this year.

U.S. Commerce Secretary Wilbur Ross said Sunday that American firms would be granted licenses to sell to Chinese telecom giant Huawei “very shortly.” Ross’ comments came after China said Friday it reached a consensus with the U.S. in principle following trade talks last week.

A strong U.S. jobs report out Friday also supported risk appetite for stocks. The U.S. economy added 128,000 jobs in October, the Labor Department said Friday.

Friday’s jobs report also showed the U.S. labor force expanding my 325,000 last month. Meanwhile, those counted as being outside of the workforce dropped by 118,000 to 95.5 million.

Meanwhile, the corporate earnings season has largely been better than expected. Seventy-five percent of the S&P 500 companies that have reported have surpassed analyst expectations, FactSet data shows.

Key Takeaways…

I took the following CNBC screenshots today regarding S&P 500 tough months, why new highs, markets in November 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

Earnings Alongside Trade Bring New Highs

S&P 500 (SPY)

Earnings Alongside Trade Bring New Highs

Communication Services (XLC)

Earnings Alongside Trade Bring New Highs

Consumer Discretionary (XLY)

Earnings Alongside Trade Bring New Highs

Consumer Staples (XLP)

Earnings Alongside Trade Bring New Highs

Energy (XLE)

Earnings Alongside Trade Bring New Highs

Financials (XLF)

Earnings Alongside Trade Bring New Highs

Real Estate (XLRE)

Earnings Alongside Trade Bring New Highs

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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