Investors Have Less Optimism Until Vaccine

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors have less optimism until vaccine. 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 open higher after Nasdaq clinches new record

Futures contracts tied to the major U.S. stock indexes rose at the start of the overnight session Wednesday evening just hours after the Nasdaq Composite clinched its 25th record close for 2020. Dow Jones Industrial Average futures climbed 50 points at the start of the overnight session, implying an opening gain of 0.3% when regular trading resumes on Thursday.

The S&P 500 (SPY) dropped -0.56% today. Sector decliners led advancers 9 to 2 as shown below in the sector graph. Losses ranged from -4.94% to less than 1%. Communication services (XLC) and technology (XLK) enjoyed minor gains of less than 1%.

The Dow Jones index finished in the red by -361 points (-1.39%) to close at 25,706. The Nasdaq added +55 points (+0.53%) to settle at 10,547.

Investors Have Less Optimism Until Vaccine

Stocks ended mixed on Thursday as investors digested news of more record coronavirus cases and hospitalizations.

Stocks hit their lows of the day after Florida reported a record in coronavirus-related hospitalizations. The state also reported a record spike in Covid deaths. California’s average daily case increase hit an all-time high as well.

“There’s less reason for optimism now than there was in April,” said Jason Thomas, chief economist at AssetMark. “In April, we had a view on how long it would take to get a vaccine, and there was the possibility that we could open the country in stages and see a sustainable recovery.”

“We’re still looking at a vaccine sometime early next year, but it’s become clear that it’ll be very difficult to open without causing a renewed surge” in coronavirus cases, Thomas added.

But gains in some of the biggest tech-related names capped the losses Thursday. Amazon rose 3.3% to an all-time high. Alphabet, Microsoft and Apple were up at least 0.4% each.

These stocks have outperformed this week as investors grow concerned the recent global coronavirus spikes could prolong the current economic downturn and force people to stay home for longer.

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.

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7/9/20

S&P 500 Sector Graph

Investors Have Less Optimism Until Vaccine

S&P 500 (SPY)

Investors Have Less Optimism Until Vaccine

Communication Services (XLC)

Investors Have Less Optimism Until Vaccine

Consumer Discretionary (XLY)

Investors Have Less Optimism Until Vaccine

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).

Consumer Staples (XLP)

Investors Have Less Optimism Until Vaccine

Energy (XLE)

Investors Have Less Optimism Until Vaccine

Financials (XLF)

Investors Have Less Optimism Until Vaccine

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)

Investors Have Less Optimism Until Vaccine

Utilities (XLU)

S&P 500 Sector Heat Map

 

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