Fed Backstop Sparks Massive Comeback

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Fed backstop sparks massive comeback. 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 futures drop 300 points as Wall Street set to extend last week’s sharp losses

Stock futures fell in overnight trading on Sunday, pointing to more losses ahead, as investors grapple with signs of a second wave of coronavirus cases amid the reopening economy. Futures on the Dow Jones Industrial Average dropped about 320 points. The S&P 500 and Nasdaq 100 futures were also down about 1.3% each.

The S&P 500 (SPY) rose +0.83% today. All 11 sectors finished in the green as shown below in the sector graph. Gains ranged from +1.61% to less than 1%, check the sector graph for specifics.

The Dow Jones index added +157 points (+0.62%) to close at 25,763. The Nasdaq climbed +137 points (+1.43%) to settle at 9,726.

Fed Backstop Sparks Massive Comeback

Stocks staged a massive comeback Monday after the Fed released more measures supporting the market amid the COVID-19 pandemic.

Earlier in the day, the major stock averages fell sharply. The Dow traded more than 760 points lower before rebounding. The S&P 500 and Nasdaq fell as much as 2.5% and 1.9%, respectively.

The Fed said it would buy individual corporate bonds, marking a broader approach to corporate bond buying. The Fed previously had indicated that it eventually would buy bonds on the primary market, but Monday’s announcement marked an expansion of that into the secondary market. This latest announcement also shows the Fed will continue to support credit markets during the coronavirus.

Monday’s action followed a big pullback last week triggered by rising fears of a resurgence in the virus as well as investors’ profit-taking after the massive comeback.

States in the reopening process including Alabama, California, Florida and North Carolina are reporting a rise in daily new coronavirus cases. Texas and North Carolina reported a record number of virus-related hospitalizations Saturday. Dr. Scott Gottlieb, former FDA chief, told CNBC emerging coronavirus hotspots could “quickly get out of control.”

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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6/15/20

S&P 500 Sector Graph

Fed Backstop Sparks Massive Comeback

S&P 500 (SPY)

Fed Backstop Sparks Massive Comeback

Communication Services (XLC)

Fed Backstop Sparks Massive Comeback

Consumer Discretionary (XLY)

Fed Backstop Sparks Massive Comeback

Consumer Staples (XLP)

Fed Backstop Sparks Massive Comeback

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

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Energy (XLE)

Fed Backstop Sparks Massive Comeback

Financials (XLF)

Fed Backstop Sparks Massive Comeback

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Fed Backstop Sparks Massive Comeback

Utilities (XLU)

S&P 500 Sector Heat Map

 

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