Gradual Corporate Tax Cut Hits Stocks
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after gradual corporate tax cut hits 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:
Shares of Advanced Micro Devices fell 4 percent before the bell as Morgan Stanley analysts warn demand for cryptocurrency mining chips will be cut in half. “We expect cryptocurrency to gradually fade from here, consoles to decline, and graphics to be flattish,” analyst Joseph Moore said in a note.
The S&P 500 (SPY) faltered by 0.32% today as gradual corporate tax cut hits stocks. S&P sector decliners led advancers by 6 to 4. Healthcare (XLV) led the decliners to the downside by falling 1.07%. Consumer discretionary (XLY), consumer staples (XLP), financials (XLF), industrials (XLI) and materials (XLB) all slid less than 1%. Energy (XLE), real estate (XLRE), technology (XLK) and utilities (XLU) all added gains of less than 1% today.
The Dow Jones index lost ground by 85 points closing at 23,348. The Nasdaq barely moved losing 2 points finishing at 6,698.
The main focal point from today’s session was a report that the House is considering a gradual corporate tax cut that would leave the corporate rate at 20% by 2022. The market did not like that headline, reversing gains as the Dow briefly lost 100 points before losing 85 points at the close.
Some bright spots and standouts from today’s action included Apple (AAPL) adding 2.25% on the day after reports of strong demand for the iPhone X. American Tower Corp (AMT) found a strong bid +2.75% today as the real estate REITs were bought on a risk off day like today. Johnson & Johnson (JNJ) lost 1.26% today as the XLV (healthcare ETF) was in the red by around 1%. JNJ is up 21.5% YTD.
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.
S&P 500 Sector Graph
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map