Investors Seek Fed Clarity Regarding Rates

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors seek Fed clarity regarding rates. 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 higher as investors await Fed meeting

U.S. stock index futures were higher on Monday morning, as investors look ahead to a crucial Federal Reserve meeting this week. At around 01:30 a.m. ET, Dow futures rose 70 points, indicating a positive open of more than 89 points. Futures on the S&P and Nasdaq were both trading higher.

The S&P 500 (SPY) inched up +0.09% today. Sector advancers led decliners 6 to 5 as shown below in the sector graph. Communication services (XLC) +1.14% and real estate (XLRE) +1.09% led advancers. Consumer discretionary (XLY), energy (XLE), healthcare (XLV) and technology (XLK) each had minor gains of less than 1%. Consumer staples (XLP), financials (XLF), industrials (XLI), materials (XLB) and utilities (XLU) each had small losses of less than 1%.

The Dow Jones index was positive by +22 points (+0.09%) to close at 26,112. The Nasdaq ended in the green by +48 points (+0.62%) to settle at 7,845.

Investors Seek Fed Clarity Regarding Rates

Stocks added minimal gains on Monday as investors focused on the Fed meeting later in the week. Investors are looking for clarity from the Fed regarding possible rate cuts in July and later in 2019. I found the following quote in the above CNBC article regarding possible rate cuts in 2019, “The market is going to be looking for evidence that the Fed will open the door to possibly cut rates within the next three months.” said Michael Reynolds, investment strategy officer at Glenmede.

Key Takeaways…

I took the following CNBC screenshot this morning regarding markets this week and a CNBC video clip where analysts debate what the Fed will do this week:

Stocks are rising ahead of the Fed meeting-Six experts debate if the markets are right

Markets are rising on hopes that the Federal Reserve will decide to cut rates at the Federal Open Market Committee meeting this week. Six experts debate where they see the Fed headed based on trade and economic concerns.

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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6/17/19

S&P 500 Sector Graph

Investors Seek Fed Clarity Regarding Rates

S&P 500 (SPY)

Investors Seek Fed Clarity Regarding Rates

Communication Services (XLC)

Investors Seek Fed Clarity Regarding Rates

Consumer Discretionary (XLY)

Investors Seek Fed Clarity Regarding Rates

Consumer Staples (XLP)

Investors Seek Fed Clarity Regarding Rates

Energy (XLE)

Investors Seek Fed Clarity Regarding Rates

Financials (XLF)

Investors Seek Fed Clarity Regarding Rates

Real Estate (XLRE)

Investors Seek Fed Clarity Regarding Rates

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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