Fed Patient Regarding Rates Sends Stocks Higher

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after Fed patient regarding rates sends stocks higher. 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 jumps more than 250 points, boosted by Boeing and Apple earnings

The results from the Dow members come during the busiest week of the earnings season. By the end of this week, more than 100 S&P 500 companies will have released their quarterly results. So far, 71 percent of the companies that have reported have surpassed earnings expectations, FactSet data show.

The S&P 500 (SPY) climbed +1.55% today. All 11 sectors finished in the green as shown below in the sector graph. Technology (XLK) led the market higher with a +3.06% gain. Communication services (XLC), consumer discretionary (XLY), energy (XLE), healthcare (XLV), industrials (XLI) and materials (XLB) all enjoyed +1% or more gains. Consumer staples (XLP), financials (XLF), real estate (XLRE) and utilities (XLU) each added less than 1%.

The Dow Jones index propelled +434 points higher (+1.77%) to close at 25,014. The Nasdaq jumped +154 points (+2.20%) to settle at 7,183.

Fed Patient Regarding Rates Sends Stocks Higher

All 3 major averages enjoyed +1% or more gains as the Fed indicated it will be “patient” regarding rising interest rates. The market also found strength in strong earnings reports from Boeing and Apple. Fed Chair Powell’s stance regarding rates has changed since last year from continuing to rise rates in 2019 to “need to see a need for further rate hikes.”

Key Takeaways…

I took the following CNBC screenshots this morning regarding luxury spending and Fed for thought:

Fed Patient Regarding Rates Sends Stocks Higher

Fed Patient Regarding Rates Sends Stocks Higher

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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1/30/19

S&P 500 Sector Graph

Fed Patient Regarding Rates Sends Stocks Higher

S&P 500 (SPY)

Fed Patient Regarding Rates Sends Stocks Higher

Communication Services (XLC)

Fed Patient Regarding Rates Sends Stocks Higher

Consumer Discretionary (XLY)

Fed Patient Regarding Rates Sends Stocks Higher

Consumer Staples (XLP)

Fed Patient Regarding Rates Sends Stocks Higher

Energy (XLE)

Fed Patient Regarding Rates Sends Stocks Higher

Financials (XLF)

Fed Patient Regarding Rates Sends Stocks Higher

Real Estate (XLRE)

Fed Patient Regarding Rates Sends Stocks Higher

Healthcare (XLV)

Fed Patient Regarding Rates Sends Stocks Higher

Industrials (XLI)

Fed Patient Regarding Rates Sends Stocks Higher

Materials (XLB)

Fed Patient Regarding Rates Sends Stocks Higher

Technology (XLK)

Fed Patient Regarding Rates Sends Stocks Higher

Utilities (XLU)

Fed Patient Regarding Rates Sends Stocks Higher

S&P 500 Sector Heat Map

Fed Patient Regarding Rates Sends Stocks Higher

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