Gloomy Fed Outlook Send Stocks Lower

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as gloomy Fed outlook send stocks lower. 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:

Stock futures flat after S&P 500 notches new record

U.S. stock futures were flat in overnight trading on Tuesday, after the S&P 500 hit its highest level ever, wiping out all the losses from the coronavirus sell-off. Dow futures rose 18 points. The S&P 500 and Nasdaq 100 futures gained 0.04% and 0.05%, respectively.

The S&P 500 (SPY) lost -0.44% today. All 11 sectors landed in negative territory as shown below in the sector graph. Losses ranged from -2.05% to less than 1%.

The Dow Jones index fell -85 points (-0.31%) to close at 27,692. The Nasdaq declined -64 points (-0.57%) to settle at 11,146.

Gloomy Fed Outlook Send Stocks Lower

Early gains from upbeat earnings and excitement around Apple reaching a $2 trillion market cap valuation dissolved as the Fed minutes were released showing the Fed was concerned that the coronavirus was posing considerable risks to the economic outlook over the medium term.”

The Fed kept rates unchanged last month, noting the economy was still in need of monetary support.

Earlier in the day, the major averages rose as Apple became the first U.S. company to reach a market cap of $2 trillion. With that milestone, Apple officially doubled its valuation in just over two years. In 2020 alone, Apple has surged nearly 60% and was one of the stocks leading the market off its coronavirus lows. The stock closed well off its highs, eking out a gain of just 0.1%.

Hopes of Progress in Coronavirus Relief Aid

Politico reported House Speaker Nancy Pelosi said she is was willing to cut some demands to get an agreement on the bill.

Retail Earnings Shine

Target rose more than 12% after the retailer reported soaring profit and sales last quarter. Digital sales increased by 197% from a year ago. Lowe’s shares gained 0.2% after the home improvement retailer reported a 30% surge in second-quarter revenue.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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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8/19/20

S&P 500 Sector Graph

Gloomy Fed Outlook Send Stocks Lower

S&P 500 (SPY)

Gloomy Fed Outlook Send Stocks Lower

Communication Services (XLC)

Gloomy Fed Outlook Send Stocks Lower

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Consumer Discretionary (XLY)

Gloomy Fed Outlook Send Stocks Lower

Consumer Staples (XLP)

Gloomy Fed Outlook Send Stocks Lower

Energy (XLE)

Gloomy Fed Outlook Send Stocks Lower

Financials (XLF)

Gloomy Fed Outlook Send Stocks Lower

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Gloomy Fed Outlook Send Stocks Lower

Utilities (XLU)

S&P 500 Sector Heat Map

 

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