Investors Thinking Rationally Following Irrational Selloff

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after investors thinking rationally following irrational selloff. 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 sharply lower after weak data

U.S. stock index futures were lower on Friday morning on the back of weaker-than-expected retail data. At around 2:30 a.m. ET, Dow Jones Industrial Average futures fell 99, indicating a negative open of more than 115 points. Futures on the S&P and Nasdaq were also seen slightly lower. On Thursday, U.S.

The S&P 500 (SPY) jumped +1.09% today. All 11 sectors finished in the green as shown below in the sector graph. Financials (XLF) led the market higher with a +2.13% gain. Energy (XLE), healthcare (XLV), industrials (XLI) and materials (XLB) each had gains of over 1%. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), real estate (XLRE), technology (XLK) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index climbed +443 points (+1.74%) to close at 25,883. The Nasdaq added +45 points (+0.61%) to settle at 7,472.

Investors Thinking Rationally Following Irrational Selloff

Stocks popped higher Friday as investors liked the growing chances of a new US China trade deal. Financials (XLF) and energy (XLE) supported the market move higher with their solid gains. While reading the above CNBC article, I was struck by the following quote:

“The market is just getting rational again and simply rebounding from an irrational sell-off last fall,” said Craig Callahan, president at Icon Funds. He said the market was brought down late last year by fears of a Chinese economic hard landing, worries that a slowdown in China could spread around the world and concern over tighter Federal Reserve monetary policy. “We think this is just those fears subsiding and the market being rational again,” said Callahan. “The China trade talks are helping with the first one.”

Key Takeaway…

I took the following CNBC screenshot this morning regarding a sector snapshot:

Investors Thinking Rationally Following Irrational Selloff

Notable S&P 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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2/15/19

S&P 500 Sector Graph

Investors Thinking Rationally Following Irrational Selloff

S&P 500 (SPY)

Investors Thinking Rationally Following Irrational Selloff

Communication Services (XLC)

Investors Thinking Rationally Following Irrational Selloff

Consumer Discretionary (XLY)

Investors Thinking Rationally Following Irrational Selloff

Consumer Staples (XLP)

Investors Thinking Rationally Following Irrational Selloff

Energy (XLE)

Investors Thinking Rationally Following Irrational Selloff

Financials (XLF)

Investors Thinking Rationally Following Irrational Selloff

Real Estate (XLRE)

Investors Thinking Rationally Following Irrational Selloff

Healthcare (XLV)

Investors Thinking Rationally Following Irrational Selloff

Industrials (XLI)

Investors Thinking Rationally Following Irrational Selloff

Materials (XLB)

Investors Thinking Rationally Following Irrational Selloff

Technology (XLK)

Investors Thinking Rationally Following Irrational Selloff

Utilities (XLU)

Investors Thinking Rationally Following Irrational Selloff

S&P 500 Sector Heat Map

Investors Thinking Rationally Following Irrational Selloff

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