Growth Versus Value Stocks 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 stocks 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:

Dow futures rise 150 points following a record-setting rally on promising vaccine news

Stock futures rose in overnight trading on Monday following a record-setting rally sparked by promising news on a coronavirus vaccine. Futures on the Dow Jones Industrial Average gained 150 points, indicating an opening gain of about 130 points on Tuesday. S&P 500 futures rose 0.4% and Nasdaq 100 futures climbed 0.6%.

The S&P 500 (SPY) slipped -0.14% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Gains ranged from +3.24% to less than 1%. Technology (XLK) led the decliners down with a loss of -1.86%. Communication services (XLC) and consumer discretionary (XLY) had minor losses of less than 1%.

The Dow Jones index added +262 points (+0.90%) to close at 29,420. The Nasdaq lost -159 points (-1.37%) to settle at 11,553.

Growth Versus Value Stocks Debate Continues

Stocks ended mixed on Tuesday as a classic rotation from growth to value stocks continues.

“This is a market in which a rotation is likely to continue into the end of the year,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Technology, consumer discretionary and communication services remain our favorite sectors for the long term … but I think near term, with signs of economic improvement on the horizon, we’re going to see cyclical companies outperform.”

Both the Dow and S&P 500 hit intraday record highs on Monday before closing well off those levels as weakness in the tech sector put pressure on the broader market. The Dow rallied more than 800 points in the previous session.

Those moves were sparked by U.S. pharmaceutical giant Pfizer and German biotech firm BioNTech announcing their coronavirus vaccine was more than 90% effective in preventing Covid-19. Investors also got some positive coronavirus news on Tuesday, after the Food and Drug Administration approved Eli Lilly’s Covid-19 treatment for emergency use.

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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11/10/20

S&P 500 Sector Graph

Growth Versus Value Stocks Debate Continues

S&P 500 (SPY)

Growth Versus Value Stocks Debate Continues

Communication Services (XLC)

Growth Versus Value Stocks Debate Continues

Consumer Discretionary (XLY)

Growth Versus Value Stocks 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 Staples (XLP)

Growth Versus Value Stocks Debate Continues

Energy (XLE)

Growth Versus Value Stocks Debate Continues

Financials (XLF)

Growth Versus Value Stocks Debate Continues

Real Estate (XLRE)

Growth Versus Value Stocks Debate Continues

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.

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Growth Versus Value Stocks Debate Continues

Episode 3: 6 Investing Rules for Individual Investors – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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