Investors Focus Towards Earnings and Stimulus

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors focus towards earnings and 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:

Stock futures rise slightly ahead of big week of earnings, coronavirus stimulus in focus

U.S. stock futures rose on Sunday night as investors braced for a big week of corporate earnings and lawmakers continued coronavirus stimulus negotiations. McDonald’s, Pfizer, Alphabet, Apple and AMD are among the companies slated to release their latest quarterly figures this week.

The S&P 500 (SPY) rose +0.74% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Gains ranged from +1.58% to less than 1%. Utilities (XLU) finished in the red by -1.21%. Financials (XLF) suffered a minor loss of less than 1%.

The Dow Jones index jumped +114 points (+0.43%) to close at 26,584. The Nasdaq climbed +173 points (+1.67%) to settle at 10,536.

Investors Focus Towards Earnings and Stimulus

Stocks gained ground Monday after tech outperformed as investors focus towards a busy week of earnings and a next round stimulus package from the government.

Apple climbed 2.3%. Other tech-related stocks, including Facebook, Amazon, Netflix and Alphabet, also traded higher.

This week will be one of the busiest of the corporate earnings season. McDonald’s, Pfizer, Alphabet, Apple and AMD are among the companies slated to release their latest quarterly figures this week.

Through Monday morning, 130 S&P 500 companies had reported earnings, with 80% beating analyst expectations, according to Refinitiv. However, overall S&P 500 earnings have fallen 40% from the year-earlier period as the coronavirus pandemic takes a big bite out of corporate profits.

Traders also turned their eyes to Washington as lawmakers tried to push forward on another coronavirus stimulus package.

On Sunday, Treasury Secretary Steven Mnuchin said Republicans had finalized a bill for about $1 trillion in coronavirus relief funds. Mnuchin added he hopes the proposal can find bipartisan support.

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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7/27/20

S&P 500 Sector Graph

Investors Focus Towards Earnings and Stimulus

S&P 500 (SPY)

Investors Focus Towards Earnings and Stimulus

Communication Services (XLC)

Investors Focus Towards Earnings and Stimulus

Consumer Discretionary (XLY)

Investors Focus Towards Earnings and Stimulus

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Consumer Staples (XLP)

Investors Focus Towards Earnings and Stimulus

Energy (XLE)

Investors Focus Towards Earnings and Stimulus

Financials (XLF)

Investors Focus Towards Earnings and Stimulus

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Investors Focus Towards Earnings and Stimulus

Utilities (XLU)

S&P 500 Sector Heat Map

 

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