Fed Firm on Rates With Economy

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Fed firm on rates with economy. 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 futures point to a lower open as investors look ahead to Fed chair’s speech

U.S. stock index futures were lower Wednesday morning.

The S&P 500 (SPY) rose by +0.07% today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), energy (XLE), financials (XLF), industrials (XLI) and materials (XLB) each suffered small losses of less than 1%. Real estate (XLRE) and utilities (XLU) led advancers with gains of over 1%. Consumer staples (XLP), healthcare (XLV) and technology (XLK) each enjoyed minor gains of less than 1%.

The Dow Jones index added +92 points (+0.33%) to close at 27,783. The Nasdaq lost a minimal -3 points (-0.05%) to settle at 8,482.

Fed Firm on Rates With Economy

Majority of stocks ended in the green on Wednesday as investors absorbed testimony from Fed Chair Jerome Powell.

Disney jumped 7.4% after the media giant said its Disney+ streaming service got more than 10 million sign-ups after launching on Tuesday.

Gains were capped after Dow Jones reported U.S.-China trade talks have hit a snag over agricultural purchases. The report also said Beijing is resisting requests from the U.S. to curb tech transfers as well as enforcement mechanisms. China is also reportedly balking at commitments to specific farm purchases from the U.S.

Fed Chairman Jerome Powell addressed the Congressional Joint Economic Committee later in the day. In prepared remarks, he said the path of Fed interest rates is unlikely to change as long as the economy keeps growing.

“We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook of moderate economic growth, a strong labor market, and inflation near our symmetric 2 percent objective,” he said in the prepared testimony.

However, he cautioned that challenges such as low inflation and weakness overseas remain.

Key Takeaways…

I took the following CNBC screenshots today regarding Powell testimony, Goldman on yields, Fed rate cut probabilities and driving the action:

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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S&P 500 Sector Graph

Fed Firm on Rates With Economy

S&P 500 (SPY)

Fed Firm on Rates With Economy

Communication Services (XLC)

Fed Firm on Rates With Economy

Consumer Discretionary (XLY)

Fed Firm on Rates With Economy

Consumer Staples (XLP)

Fed Firm on Rates With Economy

Energy (XLE)

Fed Firm on Rates With Economy

Financials (XLF)

Fed Firm on Rates With Economy

Real Estate (XLRE)

Fed Firm on Rates With Economy

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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