Investors Thinking About Earnings Growth Again

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors thinking about earnings growth again. 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:

Stocks close little changed, IBM leads tech shares higher

Stocks ended a volatile session along the flatline on Wednesday despite strong gains from IBM that lifted the overall technology sector. The Dow Jones Industrial Average dipped 9.77 points, or less than 0.1% to 29,186.27. Earlier in the day, the Dow was up more than 120 points.

The S&P 500 (SPY) inched higher by +0.03%. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), energy (XLE), industrials (XLI), materials (XLB) and real estate (XLRE) each suffered small losses of less than 1%. Consumer staples (XLP), financials (XLF), healthcare (XLV), technology (XLK) and utilities (XLU) each enjoyed minor gains of less than 1%.

The Dow Jones index lost -9 points (-0.03%) to close at 29,186. The Nasdaq gained +12 points (+0.14%) to settle at 9,383.

Investors Thinking About Earnings Growth Again

Stocks finished about unchanged Wednesday as investors begin to digest earnings.

So far, more than 10% of S&P 500 companies have posted their latest quarterly results. Of those companies, 75% have posted better-than-forecast earnings, FactSet data shows.

“Companies, for the most part, are putting up the numbers they need to for the market to keep moving higher,” said Dan Russo, chief market strategist at Chaikin Analytics. “We’re now lapping the tough earnings comparisons from last year, so investors are starting to think about earnings growth again.”

Tesla shares jumped 4.1% as the electric car maker’s market cap broke above $100 billion for the first time.

President Donald Trump also said he trusts Chinese President Xi Jinping to deal with the Coronavirus

crisis, adding the U.S. has everything “totally under control.” Trump made his comments after U.S. public health officials confirmed that the first U.S. case has been diagnosed in Washington State. However, the Centers for Disease Control and Prevention said the patient “poses little risk” to the public.

Key Takeaway…

I took the following CNBC screenshot today regarding driving the action:

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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1/22/20

S&P 500 Sector Graph

Investors Thinking About Earnings Growth Again

S&P 500 (SPY)

Investors Thinking About Earnings Growth Again

Communication Services (XLC)

Investors Thinking About Earnings Growth Again

Consumer Discretionary (XLY)

Investors Thinking About Earnings Growth Again

Consumer Staples (XLP)

Investors Thinking About Earnings Growth Again

Energy (XLE)

Investors Thinking About Earnings Growth Again

Financials (XLF)

Investors Thinking About Earnings Growth Again

Real Estate (XLRE)

Investors Thinking About Earnings Growth Again

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

 

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