Investors Torn Between Optimism and Grim Economic Data

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors torn between optimism and grim economic data. 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 drops more than 400 points, Nasdaq snaps 6-day winning streak on reopening jitters

Stocks fell sharply on Tuesday, giving back some of their recently strong gains, as investors evaluated the latest attempts to reopen the economy. The Dow Jones Industrial Average closed 457.21 points lower, or 1.9%, at 23,764.78. The S&P 500 dropped 2.1% to 2,870.12 while the Nasdaq Composite also fell more than 2% to 9,002.55.

The S&P 500 (SPY) dropped -2.05% today. All 11 sectors ended in negative territory as shown below in the sector graph. Losses ranged from -4.25% to less than 1%, check the sector graph for specifics.

The Dow Jones index fell -457 points (-1.89%) to close at 23,764. The Nasdaq gave back -189 points (-2.06%) to settle at 9,002.

Investors Torn Between Optimism and Grim Economic Data

Stocks fell Tuesday as investors gave thought to the risks of reopening the economy versus grim economic data.

“Markets have been torn between optimism on the tentative re-opening of some economies and caution on the still grim economic data,” Mike Pyle, global chief investment strategist at BlackRock Investment Institute, said in a note. “Markets will watch out for any cracks in the financial system and elsewhere in the economy as virus infections climb.”

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, and other health officials testified before the Senate Health Committee to discuss reopening the economy. Fauci noted a vaccine will be essential in stopping the coronavirus spread, but warned it will be a while before a usable one is available. Fauci added the U.S. could face more “suffering and death” if states start to reopen too quickly.

“Growth has been bulletproof in 2020,” Stephen Suttmeier, Bank of America’s technical research strategist, said in a note on Monday. “No change in leadership as the 2020 parabolic rise for Growth vs Value.

Key Takeaway…

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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5/12/20

S&P 500 Sector Graph

Investors Torn Between Optimism and Grim Economic Data

S&P 500 (SPY)

Investors Torn Between Optimism and Grim Economic Data

Communication Services (XLC)

Investors Torn Between Optimism and Grim Economic Data

Consumer Discretionary (XLY)

Investors Torn Between Optimism and Grim Economic Data

Consumer Staples (XLP)

Investors Torn Between Optimism and Grim Economic Data

Energy (XLE)

Investors Torn Between Optimism and Grim Economic Data

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Financials (XLF)

Investors Torn Between Optimism and Grim Economic Data

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Investors Torn Between Optimism and Grim Economic Data

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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