Earnings Season Must Prove Lofty Valuations

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as earnings season must prove lofty valuations. 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 stocks set to open higher after Dow posts worst day since October

U.S. stock index futures were higher on Tuesday morning after the Dow posted its worst trading day in about three months. At around 1:40 a.m. ET, Dow futures were up by 179 points, indicating a positive open of more than 171 points. Futures on the S&P 500 and Nasdaq were also higher.

The S&P 500 (SPY) rose by 1.01% today. All 11 sectors landed in positive territory as shown below in the sector graph. Communication services (XLC), financials (XLF), materials (XLB) and technology (XLK) each had gains of more than 1%. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), healthcare (XLV), industrials (XLI), real estate (XLRE) and utilities (XLU) each enjoyed small gains of less than 1%.

The Dow Jones index added +187 points (+0.66%) to close at 28,722. The Nasdaq jumped +130 points (+1.43%) to settle at 9,269.

Earnings Season Must Prove Lofty Valuations

Stocks gained ground on Tuesday as equities rebounded from a selloff caused by Coronavirus concerns.

In China, where the virus originated from, the virus has killed more than 100 people while over 4,500 have been infected. Senior staff at the White House are considering travel restrictions on China, concerned about Chinese citizens traveling to the U.S. amid the fast-spreading virus, CNBC reported, citing sources.

President Donald Trump said the U.S. is in “very close communication” as it relates to the virus.

On the data front, U.S. consumer confidence rose more than expected in January as sentiment around the labor market improved.

Of the S&P 500 companies that have reported thus far, 67% have posted better-than-expected earnings, FactSet data shows.

Tim Cook on Q1 2020 earnings: iPhone 11 remains top seller

CNBC’s Josh Lipton reports on Tim Cook’s comments on Apple’s Q1 earnings announcement.

Key Takeaways….

Market appeared overdue for a ‘corrective phase,’ says Wolfe Research’s John Roque

John Roque, senior managing director at Wolfe Research, joins “Squawk Box” to discuss why he thinks the markets were overdue for a “corrective phase.”

Notable S&P 500 Movers…

I’ve highlighted below 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 Season Must Prove Lofty Valuations

S&P 500 (SPY)

Earnings Season Must Prove Lofty Valuations

Communication Services (XLC)

Earnings Season Must Prove Lofty Valuations

Consumer Discretionary (XLY)

Earnings Season Must Prove Lofty Valuations

Consumer Staples (XLP)

Earnings Season Must Prove Lofty Valuations

Energy (XLE)

Earnings Season Must Prove Lofty Valuations

Financials (XLF)

Earnings Season Must Prove Lofty Valuations

Real Estate (XLRE)

Earnings Season Must Prove Lofty Valuations

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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