Investors Applaud Phase One Trade Deal

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors applaud phase one trade deal. 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 rise after optimistic Trump comments on US-China trade

U.S. stock futures traded higher after President Donald Trump issued positive remarks on the U.S.-China trade talks.

The S&P 500 (SPY) popped 1.09% higher today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), energy (XLE), financials (XLF), industrials (XLI), materials (XLB) and technology (XLK) led the market higher, each with gains of more than 1%. Healthcare (XLV) had a minor gain of less than 1%. Consumer staples (XLP), real estate (XLRE) and utilities (XLU) each suffered small losses of less than 1%.

The Dow Jones index jumped +319 points (+1.21%) to close at 26,816. The Nasdaq climbed +106 points (+1.34%) to settle at 8,057.

Investors Applaud Phase One Trade Deal

All 3 major averages found gains of more than 1% as investors cheered the first phase of a US China trade deal.

Trump told reporters at the Oval Office that phase one of the trade deal will be written over the next three weeks. The major indexes hit their session highs on this comment, with the Dow rising more than 500 points. Trump made his comments after meeting with Chinese Vice Premier Liu He.

As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.

Treasury Secretary Steven Mnuchin said both sides struck an “almost complete agreement” on currency and financial services issues. Phase two of the deal will “start almost immediately” after the first one is signed, Trump said.

Key Takeaways…

I took the following CNBC screenshots regarding moving markets, beyond a truce, sector winners, sector laggards and driving the action:

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.

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10/11/19

S&P 500 Sector Graph

Investors Applaud Phase One Trade Deal

S&P 500 (SPY)

Investors Applaud Phase One Trade Deal

Communication Services (XLC)

Investors Applaud Phase One Trade Deal

Consumer Discretionary (XLY)

Investors Applaud Phase One Trade Deal

Consumer Staples (XLP)

Investors Applaud Phase One Trade Deal

Energy (XLE)

Investors Applaud Phase One Trade Deal

Financials (XLF)

Investors Applaud Phase One Trade Deal

Real Estate (XLRE)

Investors Applaud Phase One Trade Deal

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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