Economic Recovery Depends on Fiscal Stimulus

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as economic recovery depends on fiscal stimulus. 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 are flat in overnight trading with all eyes on July jobs report

Futures tied to major U.S. equity averages held steady in overnight trading on Thursday as investors awaited a key monthly jobs report. Dow Jones Industrial Average futures dipped just about 20 points. The S&P 500 and the Nasdaq 100 futures were little changed.

The S&P 500 (SPY) inched up +0.06% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Gains ranged from +2.14% to less than 1%. Losses ranged from -1.49% to less than 1%, check the sector graph for specifics.

The Dow Jones index added +47 points (+0.17%) to close at 27,434. The Nasdaq lost -97 points (-0.87%) to settle at 11,010.

Economic Recovery Depends on Fiscal Stimulus

Stocks ended mixed Friday as investors weighed several factors including China tensions, stimulus relief aid and a July jobs report.

China Tensions Rise

President Donald Trump on Thursday issued executive orders to address “the threat posed” by Chinese apps TikTok and WeChat. As part of the order, any transaction with ByteDance and Tencent, the parent companies of TikTok and WeChat, respectively, will be barred in 45 days.

It comes as tensions between Washington and Beijing continue to escalate over several issues including the origins of the coronavirus and democracy in Hong Kong. The U.S. on Friday sanctioned Hong Kong Chief Executive Carrie Lam.

Stimulus Update

The White House and Democrats struggle to agree on a new stimulus package after a $600 per week enhanced federal unemployment benefit expired at the end of July.

The Trump administration has threatened to pull out of talks and try to address jobless benefits and the eviction moratorium by executive action if the sides fail to reach an agreement by Friday. Top lawmakers told CNBC Thursday that they expect a compromise to be hatched but big differences still remain.

US Added More Jobs Than Expected in July

The U.S. economy added 1.763 million jobs in July, the Labor Department said Friday. Economists polled by Dow Jones expected a gain of 1.4 million. The U.S. unemployment rate was also better than expected, falling to 10.2%. The jobs reports for June and May were also revised sharply higher.

Key Takeaways…

Coronavirus relief talks grind to a near halt, dimming chances of a stimulus deal

The prospects for a broad coronavirus relief package appeared grim Friday morning after a bitter meeting between Democratic leaders and Trump administration officials yielded little progress. It is unclear whether negotiators will huddle again Friday to try to strike a deal to lift a U.S.

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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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8/7/20

S&P 500 Sector Graph

Economic Recovery Depends on Fiscal Stimulus

S&P 500 (SPY)

Economic Recovery Depends on Fiscal Stimulus

Communication Services (XLC)

Economic Recovery Depends on Fiscal Stimulus

Consumer Discretionary (XLY)

Economic Recovery Depends on Fiscal Stimulus

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Consumer Staples (XLP)

Economic Recovery Depends on Fiscal Stimulus

Energy (XLE)

Economic Recovery Depends on Fiscal Stimulus

Financials (XLF)

Economic Recovery Depends on Fiscal Stimulus

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Economic Recovery Depends on Fiscal Stimulus

Utilities (XLU)

S&P 500 Sector Heat Map

 

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