Fed Dovish Inflation Message Lifts Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after Fed dovish inflation message lifts stocks. 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 point to a triple-digit loss at the open after Trump plays down China trade talks

U.S. stock index futures pointed to a lower open Wednesday, after President Donald Trump told reporters he was not sure about whether a scheduled meeting with the North Korean leader would actually happen. The president also said Tuesday he was “not satisfied” with trade talks with China despite opposing comments from other members of his administration.

The S&P 500 (SPY) added +0.32% today. Sector advancers led decliners 6 to 4 as shown below in the sector graph. Consumer discretionary (XLY), consumer staples (XLP), healthcare (XLV), real estate (XLRE), technology (XLK) and utilities (XLU) each had minor gains of less than 1%. Energy (XLE), financials (XLF), industrials (XLI) and materials (XLB) each had minor losses of less than 1%.

The Dow Jones index staged a late day rally, adding 52 points (+0.21%) to close at 24,886. The Nasdaq advanced 47 points (+0.64%) to settle at 7,425.

Fed Dovish Inflation Message Lifts Stocks

Stocks staged a late day rally after the Fed minutes revealed the Fed will let inflation run above its inflation target of 2% for a temporary period. The Dow began the morning down more than 100 points after retailer Target reported earnings that missed estimates. The President tweeted an update on trade talks, suggesting a new direction for talks:

Fed Dovish Inflation Message Lifts Stocks

Key takeaway…

I took the following CNBC screenshot this morning regarding retail trends this earnings season following reported earnings of retail giants Home Depot, Lowe’s and Target:

Fed Dovish Inflation Message Lifts Stocks

Notable S&P movers…

  • MSFT +1.19%
  • AMZN +1.29%
  • FB +1.69%
  • BRK.B -1.10%
  • DIS -1.13%
  • CMCSA -1.94%
  • NFLX +3.95%
  • MCD +1.36%
  • BA +1.18%
  • INTC +1.40%
  • NVDA +2.06%

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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5/23/18

S&P 500 Sector Graph

Fed Dovish Inflation Message Lifts Stocks

S&P 500 (SPY)

Fed Dovish Inflation Message Lifts Stocks

Consumer Discretionary (XLY)

Fed Dovish Inflation Message Lifts Stocks

Consumer Staples (XLP)

Fed Dovish Inflation Message Lifts Stocks

Energy (XLE)

Fed Dovish Inflation Message Lifts Stocks

Financials (XLF)

Fed Dovish Inflation Message Lifts Stocks

Real Estate (XLRE)

Fed Dovish Inflation Message Lifts Stocks

Healthcare (XLV)

Fed Dovish Inflation Message Lifts Stocks

Industrials (XLI)

Fed Dovish Inflation Message Lifts Stocks

Materials (XLB)

Fed Dovish Inflation Message Lifts Stocks

Technology (XLK)

Fed Dovish Inflation Message Lifts Stocks

Utilities (XLU)

Fed Dovish Inflation Message Lifts Stocks

S&P 500 Sector Heat Map

Fed Dovish Inflation Message Lifts Stocks

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