Investors Weighing Several Economic Factors

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors weighing several economic factors. 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 point to flat open as coronavirus fears linger

U.S. stock index futures were little changed on Monday as investors assess the economic impact of the coronavirus outbreak in China. Around 7:15 a.m. ET, Dow Jones Industrial Average futures were down 19 points, indicating a loss of about 30 points at the open. S&P 500 and Nasdaq 100 futures also traded along the flatline.

The S&P 500 (SPY) rose +0.73% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Consumer discretionary (XLY), real estate (XLRE) and technology (XLK) led advancers higher with gains of more than 1%. Communication services (XLC), consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI) and utilities (XLU) each enjoyed minor gains of less than 1%. Energy (XLE) and materials (XLB) each suffered small losses of less than 1%.

The Dow Jones index added +174 points (+0.60%) to close at 29,276. The Nasdaq jumped +107 points (+1.13%) to settle at 9,628.

Investors Weighing Several Economic Factors

Stocks climbed on Monday as investors weighing several economic factors with the coronavirus being one of those.

“Stock market investors are torn between fear that the coronavirus might continue to spread, weighing on global economic growth, and optimism given that the latest batch of global economic indicators is showing rebounding global growth,” said Ed Yardeni, president and chief investment strategist at Yardeni Research, in a note.

Monthly U.S. employment data released Friday showed more than 200,000 jobs were created in January. The Institute for Supply Management said last week manufacturing activity rebounded in the U.S. last month while growth in the services sector picked up.

As of Sunday night, China said a total of 40,171 cases of coronavirus had been confirmed and 908 people had died, while 14 Americans have tested positive for the virus aboard a cruise ship quarantined in Japan. The death toll from the coronavirus has also overtaken that of the SARS outbreak in the early 2000s.

Chinese President Xi Jinping said China would speed up development of drugs aimed at treating pneumonia-like viruses. Xi also said China will win the fight against the coronavirus. He noted, however, the situation remains dire.

“The duration of this virus will determine how long businesses will be sidelined and what the effect will be on China and the global economy” said Bruce Bittles, chief investment strategist at Baird.

Key Takeaways…

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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S&P 500 Sector Graph

Investors Weighing Several Economic Factors

S&P 500 (SPY)

Investors Weighing Several Economic Factors

Communication Services (XLC)

Investors Weighing Several Economic Factors

Consumer Discretionary (XLY)

Investors Weighing Several Economic Factors

Consumer Staples (XLP)

Investors Weighing Several Economic Factors

Energy (XLE)

Investors Weighing Several Economic Factors

Financials (XLF)

Investors Weighing Several Economic Factors

Real Estate (XLRE)

Investors Weighing Several Economic Factors

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

 

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