Housing and Economic Data Lift Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as housing and economic data lift 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:

US futures point to higher open

U.S. stock index futures were slightly higher Friday morning as investors digest growth data out of China. At around 1:30 a.m. ET, Dow futures rose 42 points, indicating a positive open of more than 31 points. Futures on the S&P and Nasdaq were also higher. U.S.

The S&P 500 (SPY) gained +0.39% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), financials (XLF), real estate (XLRE), healthcare (XLV), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each enjoyed minor gains of less than 1%. Energy (XLE) was the only sector to suffer a small loss of less than 1%.

The Dow Jones index added +50 points (+0.17%) to close at 29,348. The Nasdaq advanced +31 points (+0.34%) to settle at 9,388.

Housing and Economic Data Lift Stocks

Stocks edged higher Friday as housing and economic data lifted stocks to record highs in all 3 major averages.

In the U.S., housing starts soared nearly 17% in December and reached a 13-year high. That data follows Thursday’s release of better-than-forecast weekly jobless claims and strong business activity numbers from the Philadelphia Federal Reserve.

For the week, the S&P 500 climbed nearly 2% while the Dow advanced 1.8%. The Nasdaq finished the week up 2.3%. Those gains built on the massive stock surge from 2019 and added to this year’s strong start. The S&P 500 and Dow are up 3.1% and 2.8%, respectively, year to date. The Nasdaq has bolted more than 4.5% higher in 2020.

The S&P 500 notched its best one-week performance since the final week of August along with the Dow and Nasdaq.

Hedge fund billionaires David Tepper and Stanley Druckenmiller are confident in the current bull run.

Tepper told CNBC’s Joe Kernen in an email: “I love riding a horse that’s running.” Tepper, meanwhile, told Kernen in a separate email he is still bullish in the “intermediate term” in part because of the Federal Reserve’s current monetary policy stance.

A solid start to the corporate earnings season also lifted investor sentiment this week. More than 8% of the S&P 500 has reported quarterly results thus far, FactSet data shows. Of those companies, 72% of companies gave posted better-than-expected earnings.

Key Takeaway…

I took the following CNBC screenshot today regarding the action:

Notable S&P 500 Movers…

I’ve highlighted below some notable S&P movers (both winners and 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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S&P 500 Sector Graph

Housing and Economic Data Lift Stocks

S&P 500 (SPY)

Housing and Economic Data Lift Stocks

Communication Services (XLC)

Housing and Economic Data Lift Stocks

Consumer Discretionary (XLY)

Housing and Economic Data Lift Stocks

Consumer Staples (XLP)

Housing and Economic Data Lift Stocks

Energy (XLE)

Housing and Economic Data Lift Stocks

Financials (XLF)

Housing and Economic Data Lift Stocks

Real Estate (XLRE)

Housing and Economic Data Lift Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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