Investors Taking Profits On Momentum Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors taking profits on momentum stocks. 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 hold steady in overnight trading after a strong tech rally on Wall Street

Stock futures were flat in overnight trading on Monday after a strong performance in technology shares pushed the S&P 500 in positive territory for the year. Futures on the Dow Jones Industrial Average dipped just about 10 points, while the S&P 500 futures were flat. The Nasdaq 100 futures rose marginally.

The S&P 500 (SPY) had a marginal gain of +0.17% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Gains ranged from +6.15% to less than 1%. Losses ranged from -1% to less than 1%, check the sector graph for specifics.

The Dow Jones index added +159 points (+0.60%) to close at 26,840. The Nasdaq dropped -86 points (-0.81%) to settle at 10,680.

Investors Taking Profits On Momentum Stocks

Stocks ended mixed Tuesday as investors took profits on the high flying momentum names and put money in value stocks in sectors like energy, financials and industrials.

Shares of Facebook, Amazon, Netflix, Microsoft and Apple were all down more than 1%. Alphabet shares slid 0.5%. This muted performance comes after a big run-up in July. These stock are all up at least 2.6% month to date.

Bank stocks — which have taken a beating this year — rose broadly. JPMorgan Chase advanced 2.2% and Bank of America advanced 3.6%.

The iShares Edge MSCI USA Value Factor ETF (VLUE) rose 0.9% while its momentum counterpart (MTUM) dipped 1%.

Investors were monitoring the talks in Washington on the next coronavirus relief bill. Lawmakers face pressure to pass legislation before the end of the month, when the $600 per week federal unemployment insurance benefit is set to expire.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners and 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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7/21/20

S&P 500 Sector Graph

Investors Taking Profits On Momentum Stocks

S&P 500 (SPY)

Investors Taking Profits On Momentum Stocks

Communication Services (XLC)

Investors Taking Profits On Momentum Stocks

Consumer Discretionary (XLY)

Investors Taking Profits On Momentum Stocks

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Consumer Staples (XLP)

Investors Taking Profits On Momentum Stocks

Energy (XLE)

Investors Taking Profits On Momentum Stocks

Financials (XLF)

Investors Taking Profits On Momentum Stocks

Real Estate (XLRE)

Investors Taking Profits On Momentum Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Investors Taking Profits On Momentum Stocks

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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