Future Earnings in Question Following Coronavirus

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as future earnings in question following coronavirus. 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 down 200 points as coronavirus death toll in China continues to rise

U.S. stock index futures fell sharply on Thursday morning. At around 3:40 a.m. ET, Dow futures were down 203 points and implied a negative open of more than 176 points, while futures on the S&P 500 and Nasdaq were also lower.

The S&P 500 (SPY) inched up +0.31% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Consumer staples (XLP) and financials (XLF) led advancers higher with gains of more than 1%. Energy (XLE), industrials (XLI), real estate (XLRE), technology (XLK) and utilities (XLU) each enjoyed small gains of less than 1%. Communication services (XLC) led decliners down with a loss of over 1%. Consumer discretionary (XLY), healthcare (XLV) and materials (XLB) each suffered minor losses of less than 1%.

The Dow Jones index climbed +124 points (+0.43%) to close 28,859. The Nasdaq added +23 points (+0.26%) to settle at 9,298.

Future Earnings in Question Following Coronavirus

Stocks finished in the green Thursday, rebounding from earlier losses as the coronavirus has grabbed investors attention.

The major averages started paring losses with roughly one hour to go after the World Health Organization declared a global health emergency, but at the same time, did not recommend travel to China be restricted and said the country had the situation under control.

Stocks were down for most of the session as the death toll in China from the coronavirus hit 171, with confirmed cases of the virus surpassing 8,000. The Centers for Disease Control and Prevention later confirmed the first human-to-human transmission of the virus in the U.S., pushing the major indexes back towards their session lows.

“The spread of the Wuhan virus isn’t accelerating, but markets becoming more concerned about future earnings and economic growth as companies implement work stoppages to reduce the chance of the disease spreading,” said Tom Essaye, founder of The Sevens Report.

Facebook reported quarterly results that showed a sharp rise in expenses and narrowing margins. Facebook shares fell more than 6%.Tesla enjoyed a second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this year, sending the stock surging by 10.3%.

About 200 S&P 500 companies have reported quarterly earnings thus far, with 70% of them posting better-than-expected profits, FactSet data shows.

Key Takeaways…

Amazon slated to report fourth-quarter earnings after the bell

Amazon is set to report fourth-quarter earnings after Thursday’s closing bell. Here are the key numbers: Earnings per share: $4.03 per share, according to analysts surveyed by Refinitiv Revenue: $86.02 billion, per Refinitiv Amazon Web Services: $9.81 billion, according to FactSet Amazon is expected to see a dip in fourth-quarter profits compared to a year ago, as a result of growing investments in one-day delivery.

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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1/30/20

S&P 500 Sector Graph

Future Earnings in Question Following Coronavirus

S&P 500 (SPY)

Future Earnings in Question Following Coronavirus

Communication Services (XLC)

Future Earnings in Question Following Coronavirus

Consumer Discretionary (XLY)

Future Earnings in Question Following Coronavirus

Consumer Staples (XLP)

Future Earnings in Question Following Coronavirus

Energy (XLE)

Future Earnings in Question Following Coronavirus

Financials (XLF)

Future Earnings in Question Following Coronavirus

Real Estate (XLRE)

Future Earnings in Question Following Coronavirus

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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