Historic Drop in Oil Damages Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as a historic drop in oil damages 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:

Stock futures slide as Wall Street takes a breather after last week’s gains

U.S. stock futures opened lower on Sunday night, putting Wall Street on track to give back some of the solid gains from the previous week as investors weigh the latest news on the coronavirus front. New York Gov.

The S&P 500 (SPY) dropped -1.79% today. All 11 sectors found negative territory as shown below in the sector graph. Losses ranged from -3.78% to less than 1%, check the sector graph for specifics.

The Dow Jones index tanked -592 points (-2.44%) to close at 23,650. The Nasdaq gave back -89 points (-1.03%) to settle at 8,560.

Historic Drop in Oil Damages Stocks

Stocks landed in the red Monday as a historic drop in US oil led investors thinking about the future of the oil industry.

The May contract for West Texas Intermediate, which expires on Tuesday, plunged more than 100% to settle at negative $37.63 per barrel, a bizarre move tied to weak demand outlook and storage capacity issues.

The negative impact on stocks from oil likely would have been worse were it not for lesser declines in oil contracts expiring during future months. WTI’s June contract slid over 15.6% to $21.09 per barrel. July’s oil contract was down 6.9%. It was a strange phenomenon that analysts chalked up to the collapse in demand for oil contracts expiring this week. Refineries don’t need the oil and are near storage capacity with most of the country shut down. The negative price means producers will pay to take this oil off their hands.

Sentiment on Wall Street was also soured by the Senate not reaching a deal on more coronavirus relief. However, the Senate set up a vote as soon as Tuesday afternoon.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers.

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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4/20/20

S&P 500 Sector Graph

Historic Drop in Oil Damages Stocks

S&P 500 (SPY)

Historic Drop in Oil Damages Stocks

Communication Services (XLC)

Historic Drop in Oil Damages Stocks

Consumer Discretionary (XLY)

Historic Drop in Oil Damages Stocks

Consumer Staples (XLP)

Historic Drop in Oil Damages Stocks

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Energy (XLE)

Historic Drop in Oil Damages Stocks

Financials (XLF)

Historic Drop in Oil Damages Stocks

Real Estate (XLRE)

Historic Drop in Oil Damages Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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