High Flying Summer Enters Correction Territory

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the high flying summer enters correction territory. 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:

Futures rise slightly as market tries to avoid losses for the week

U.S. stock futures rose slightly on Thursday evening as the market indexes tried to avoid a fourth consecutive week of losses. Futures for the Dow Jones Industrial Average gained about 70 points, or 0.2%. Contracts tied to the S&P 500 and the Nasdaq Composite ticked up 0.3% and 0.4%, respectively.

The S&P 500 (SPY) rose +1.60% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Gains ranged from +2.39% to less than 1%. Energy (XLE) suffered a minor loss of less than 1%.

The Dow Jones index climbed +358 points (+1.34%) to close at 27,173. The Nasdaq added +241 points (+2.26%) to settle at 10,913.

High Flying Summer Enters Correction Territory

Stocks ended a rather rough week on a positive note Friday with gains but still trying to recover from the losses earlier this week or from weeks prior.

Both the Dow and S&P 500 posted four-week losing streaks, their longest slides since August 2019, despite Friday’s rally. The Dow lost 1.8% this week and the S&P 500 closed 0.6% lower week to date. The Nasdaq Composite had its first weekly gain in four weeks, rising 1.1% over that time period.

The major averages have had a tough month, with the S&P 500 falling 5.8% in September. The Dow has dropped 4.4% over that time period and the Nasdaq is down 7.3% month to date.

Much of September’s losses have been concentrated in megacap tech stocks, which carry a heavy weight in the indexes. Shares of Apple — the largest publicly traded company in the U.S. by market cap — have dropped 13% this month. Microsoft, Alphabet, Netflix, Amazon and Facebook are all down at least 7.9% over that time period.

“After a buoyant and hopeful summer, financial markets are cooling in the face of reality,” strategists at MRB Partners said in a note. “High-flying tech and tech-related stocks are in a full-blown correction, and weakness has recently spread to broader indexes, with a distinct smell of risk-off in the air. We had expected a gradual, albeit choppy, economic recovery, but it appears that some investors were not prepared for setbacks along the way.”

Key Takeaway…

Mario Gabelli on the market: We have a digital evolution happening right now that’s changing business models

Investor Mario Gabelli, CEO and chairman of Gamco Investors, joins ‘Closing Bell’ to discuss whether stocks that have underperformed will go up as the economy recovers.

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.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

9/25/20

S&P 500 Sector Graph

High Flying Summer Enters Correction Territory

S&P 500 (SPY)

High Flying Summer Enters Correction Territory

Communication Services (XLC)

High Flying Summer Enters Correction Territory

Consumer Discretionary (XLY)

High Flying Summer Enters Correction Territory

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)

High Flying Summer Enters Correction Territory

Energy (XLE)

High Flying Summer Enters Correction Territory

Financials (XLF)

High Flying Summer Enters Correction Territory

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.

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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.

Technology (XLK)

High Flying Summer Enters Correction Territory

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *