Investors Comforted By Chinese Stimulus

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors comforted by Chinese stimulus. 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 Wall Street rally as virus fears abate

U.S. stock index futures were sharply higher on Tuesday morning as fears ease over an economic fallout from the coronavirus outbreak. At around 2:30 a.m. ET, Dow futures were up 178 points and indicated an implied positive open of more than 198 points, while futures on the S&P 500 and Nasdaq were also higher.

The S&P 500 (SPY) popped +1.50% higher today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), healthcare (XLV), industrials (XLI), materials (XLB), real estate (XLRE) and technology (XLK) led advancers higher, each with gains of more than 1%. Consumer staples (XLP), energy (XLE) and financials (XLF) each enjoyed small gains of less than 1%. Utilities (XLU) dropped -1% on the day.

The Dow Jones index jumped +407 points (+1.44%) to close at 28,807. The Nasdaq added +194 points (+2.10%) to settle at 9,467.

Investors Comforted By Chinese Stimulus

Stocks continued its rally this week Tuesday as investors felt relief from the Chinese government pumping stimulus into its economy, as it suffers through the coronavirus.

Tuesday’s continued bounce comes after a Reuters report said China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios (RRRs) in the coming weeks to support economic growth. The report came a day after the People’s Bank of China unveiled liquidity injection measures to the tune of more than 1 trillion yuan. The PBOC also injected another 400 billion yuan in liquidity.

Tesla, meanwhile, powered the Nasdaq with a surge of more than 13% that lifted the stock above $900 for the first time. That rally follows Tesla’s best day in six years. Billionaire investor Ron Baron, a longtime Tesla bull, said Tuesday that Tesla could see revenues of $1 trillion in 10 years. Tesla, however, gave back a chunk of its gains in the final minutes of trading. At its high of the day, Tesla had surged more than 24%.

Microsoft and Caterpillar both rose around 3% to contribute to the gains. The S&P 500 tech sector surged 2.6%, led higher by Apple.

Key Takeaways…

Disney beats earnings expectations but does not update Disney+ guidance

Disney reported fiscal first-quarter earnings on Tuesday and it beat on both the top and bottom lines. Shares fluctuated after hours, but were mostly within 1% of the stock’s price at close. Here are the key numbers: Earnings per share: $1.53 per share vs.

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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2/4/20

S&P 500 Sector Graph

Investors Comforted By Chinese Stimulus

S&P 500 (SPY)

Investors Comforted By Chinese Stimulus

Communication Services (XLC)

Investors Comforted By Chinese Stimulus

Consumer Discretionary (XLY)

Investors Comforted By Chinese Stimulus

Consumer Staples (XLP)

Investors Comforted By Chinese Stimulus

Energy (XLE)

Investors Comforted By Chinese Stimulus

Financials (XLF)

Investors Comforted By Chinese Stimulus

Real Estate (XLRE)

Investors Comforted By Chinese Stimulus

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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