Failed Stimulus Plan Leaves Stocks Seeing Red

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as a failed stimulus plan leaves stocks seeing red. 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 sheds another 3% after coronavirus stimulus bill fails in Senate for a second time

Stocks fell sharply on Monday as U.S. lawmakers failed to push through massive fiscal stimulus to curtail the economic blow from the coronavirus. Talks are ongoing, but investors believe the longer Washington waits, the greater the damage to the economy.

The S&P 500 (SPY) dropped -2.93% today. Sector decliners led advancers 9 to 2 as shown below in the sector graph. Losses in decliners ranged from almost -7% to less than 1%. Check the sector graph for specifics. Communication services (XLC) and consumer discretionary (XLY) finished with minor gains of less than 1%.

The Dow Jones index lost -582 points (-3.04%) to close at 18,591. The Nasdaq was in the negative by 18 points (-0.27%) to settle at 6,860.

Failed Stimulus Plan Leaves Stocks Seeing Red

Stocks landed in a deep sea of red Monday as a stimulus bill fails to get approval.

For a second time in less than 24 hours, a bill that would authorize giant fiscal spending to stimulate the economy failed to clear a key procedural hurdle. Earlier on Monday, Treasury Secretary Steven Mnuchin told CNBC’s Jim Cramer that Congress was “very close” to getting a fiscal package done, noting it must be pushed forward “today.”

“While the Fed’s actions are an enormous help, the only way the markets are going to find sustainable improvement is when the economy is allowed to come back to life, or at least there is a real path in place for how that is going to happen,” said Paul Hickey of Bespoke Investment Group, in a note.

Wall Street has been clamoring for fiscal economic relief as the number of coronavirus cases keeps surging. The number of confirmed global cases surpassed 350,000 as deaths now total over 15,000, according to data from Johns Hopkins University. In the U.S., more than 35,000 cases have now been confirmed.

Economists at Goldman Sachs wrote Friday they expect a 24% contraction for the second quarter after a 6% drop in the first quarter. Morgan Stanley economist Ellen Zentner said in a note Sunday she expects a historic 30% contraction in the second quarter.

Key Takeaway…

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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3/23/20

S&P 500 Sector Graph

Failed Stimulus Plan Leaves Stocks Seeing Red

S&P 500 (SPY)

Failed Stimulus Plan Leaves Stocks Seeing Red

Communication Services (XLC)

Failed Stimulus Plan Leaves Stocks Seeing Red

Consumer Discretionary (XLY)

Failed Stimulus Plan Leaves Stocks Seeing Red

Consumer Staples (XLP)

Failed Stimulus Plan Leaves Stocks Seeing Red

Energy (XLE)

Failed Stimulus Plan Leaves Stocks Seeing Red

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Financials (XLF)

Failed Stimulus Plan Leaves Stocks Seeing Red

Real Estate (XLRE)

Failed Stimulus Plan Leaves Stocks Seeing Red

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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