Increased Shutdowns Will Slow Economic Recovery

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as increased shutdowns will slow economic recovery. 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 falls more than 100 points as Covid-19 cases continue to rise, Nasdaq hits record

The Dow Jones Industrial Average and S&P 500 fell on Monday following a record-setting session as traders worried about rising coronavirus cases and searched for clues on additional fiscal aid. The 30-stock Dow closed 148.47 points lower, or 0.5%, at 30,069.79 and snapped a four-day winning streak.

The S&P 500 (SPY) slipped -0.19% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Losses ranged from -2.34% to less than 1%. Communication services (XLC), technology (XLK) and utilities (XLU) enjoyed minor gains of less than 1%.

The Dow Jones index declined -148 points (-0.49%) to close at 30,069. The Nasdaq added +55 points (+0.45%) to settle at 12,519.

Increased Shutdowns Will Slow Economic Recovery

Stocks ended mixed Monday as investors reaccessed rising COVID-19 cases and possible government help.

“In the near-term, the risk of a modest equity market pullback has risen because the worsening virus situation in the U.S. could spur a positioning unwind,” wrote Goldman Sachs equity strategists in a note Monday. “Although vaccine approval in the U.S. appears imminent, increased restrictions or shutdowns in the U.S. could slow the near-term recovery in economic growth.”

The rising caseload has led to increased calls for additional fiscal stimulus. However, lawmakers are struggling to push through new legislation before year-end.

On Monday, a Democratic aide told CNBC that Congress is looking to extend government funding for an additional week to buy more time to scrape together a new relief measure. The news came after a bipartisan group of senators unveiled a $908 billion aid proposal last week.

Senate Majority Leader Mitch McConnell initially shut down the measure, but a spokesman for House Speaker Nancy Pelosi later said she and McConnell discussed their “shared commitment to completing an omnibus [spending bill] and Covid relief as soon as possible.”

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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12/7/20

S&P 500 Sector Graph

Increased Shutdowns Will Slow Economic Recovery

S&P 500 (SPY)

Increased Shutdowns Will Slow Economic Recovery

Communication Services (XLC)

Increased Shutdowns Will Slow Economic Recovery

Consumer Discretionary (XLY)

Increased Shutdowns Will Slow Economic Recovery

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Consumer Staples (XLP)

Increased Shutdowns Will Slow Economic Recovery

Energy (XLE)

Increased Shutdowns Will Slow Economic Recovery

Financials (XLF)Increased Shutdowns Will Slow Economic Recovery

Real Estate (XLRE)

Healthcare (XLV)

Increased Shutdowns Will Slow Economic Recovery

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Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Increased Shutdowns Will Slow Economic Recovery

Utilities (XLU)

S&P 500 Sector Heat Map

 

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