Investor Sentiment Boosted By Retail Sales

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investor sentiment boosted by retail sales. 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 100 points after Monday’s big comeback

Futures contracts tied to the major U.S. stock indexesrose at the start of the overnight session Monday evening as investors looked to extend Wall Street’s gains from Monday’s dramatic comeback. Dow Jones Industrial Average futures rose 100 points, suggesting an open gain of 145 points when regular trading resumes on Tuesday.

The S&P 500 (SPY) rose +1.90% today. All 11 sectors landed in positive territory as shown below in the sector graph. Gains ranged from +2.88% to less than 1%, check the sector graph for specifics.

The Dow Jones index added +526 points (+2.04%) to close at 26,289. The Nasdaq climbed +169 points (+1.75%) to settle at 9,895.

Investor Sentiment Boosted By Retail Sales

Stocks ended higher Tuesday as a jump in retail sales alongside a promising coronavirus treatment boosted investor sentiment.

The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%.

Trial results announced Tuesday showed dexamethasone — a widely available drug — can help critically ill coronavirus patients. The treatment reportedly reduced Covid-19 deaths in hospitalized patients by up to one third.

“A potential Covid steroid treatment in the UK combined with record retail sales and news of additional stimulus has been met with unbridled optimism,” said Mike Loewengart, a managing director at E-Trade. “We’ve been used to seeing record lows in economic fundamentals over the past few months and to see the pendulum swing so far in the other direction is nothing if not encouraging.”

Sentiment was also lifted after Bloomberg News reported, citing people familiar with the plan, the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.

Stocks came off their highs after Federal Reserve Chairman Powell said the central bank would adjust corporate bond buying based on market conditions. The comment may have disappointed traders who wanted the Fed to keep its foot on the pedal even as financial market conditions improve.

“If the market function continues to improve, then we are happy to slow or even stop the purchases. If it goes the other way, we will increase,” Powell said. “I don’t see us as wanting to run through the bond market like an elephant … We want to be there if things turn bad in the economy.”

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 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

6/16/20

S&P 500 Sector Graph

Investor Sentiment Boosted By Retail Sales

S&P 500 (SPY)

Investor Sentiment Boosted By Retail Sales

Communication Services (XLC)

Investor Sentiment Boosted By Retail Sales

Consumer Discretionary (XLY)

Investor Sentiment Boosted By Retail Sales

Consumer Staples (XLP)

Investor Sentiment Boosted By Retail Sales

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).

Energy (XLE)

Investor Sentiment Boosted By Retail Sales

Financials (XLF)

Investor Sentiment Boosted By Retail Sales

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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.

Technology (XLK)

Investor Sentiment Boosted By Retail Sales

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

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