Growth Versus Value Debate Continues

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the growth versus value debate continues. 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 rise after S&P 500 snaps seven-day winning streak

U.S. stock futures moved higher in overnight trading and pointed to gains at the open on Wednesday after the S&P 500 closed lower for the first time in eight days. Dow futures rose 70 points. The S&P 500 and Nasdaq-100 futures gained 0.27% and 0.5%, respectively.

The S&P 500 (SPY) gained +1.40% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph.Gains ranged from +2.27% to less than 1%. Financials (XLF) suffered a minor loss of less than 1%.

The Dow Jones index climbed +289 points (+1.05%) to close at 27,976. The Nasdaq jumped +229 points (+2.13%) to settle at 11,012.

Growth Versus Value Debate Continues

Stocks rallied on Wednesday as investors debated the sector rotation from growth to value stocks, which has been going on the last couple of days. The tech sector has been used as an ATM lately, investors taking profits from tech and buying sector laggards such as financials and industrials (sectors that would benefit from the economy reopening).

Tech Rebounds

Facebook, Amazon and Netflix were all up at least 1.5% while Alphabet advanced 1.8%. Microsoft and Apple gained more than 2.8% each.

Stocks that would benefit from the economy reopening lagged, however. Cruise operator Carnival dropped 4%. JPMorgan Chase, Bank of America and Citigroup were all lower.

Coronavirus Stimulus Update

On Wednesday, House Speaker Nancy Pelosi said both sides were still “miles apart” on relief negotiations.

Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise. Those comments came after President Donald Trump signed over the weekend four executive orders to extend some coronavirus aid.

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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8/12/20

S&P 500 Sector Graph

Growth Versus Value Debate Continues

S&P 500 (SPY)

Growth Versus Value Debate Continues

Communication Services (XLC)

Growth Versus Value Debate Continues

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Discretionary (XLY)

Growth Versus Value Debate Continues

Consumer Staples (XLP)

Growth Versus Value Debate Continues

Energy (XLE)

Growth Versus Value Debate Continues

Financials (XLF)

Growth Versus Value Debate Continues

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Technology (XLK)

Growth Versus Value Debate Continues

Utilities (XLU)

S&P 500 Sector Heat Map

 

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