IP Rights Plus Mergers Extend Highs

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as IP rights plus mergers extend highs. 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:

US futures point to higher open

U.S. stock index futures were slightly higher Monday morning.

The S&P 500 (SPY) rose +0.75% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Technology (XLK) and healthcare (XLV) led advancers with gains of +1%. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE), industrials (XLI) and materials (XLB) each enjoyed minor gains of less than 1%. Utilities (XLU) was the only sector to finish in the red with a small loss of less than 1%.

The Dow Jones index added +190 points (+0.68%) to close at 28,066. The Nasdaq climbed +112 points (+1.32%) to settle at 8,632.

IP Rights Plus Mergers Extend Highs

Stocks landed in the green Monday as positive news from China regarding trade kept the recent rally rolling.

China will raise penalties for violating intellectual property rights, according to the guidelines published by the Chinese government on Sunday. The guidelines added China will think about lowering punishment thresholds for IP theft. The Global Times, a state-run newspaper in China, also said both sides are getting “close” to reaching a deal.

Meanwhile, U.S. national security advisor Robert O’Brien said on Saturday that a phase one trade deal with China could happen before the end of the year. He also cautioned, however, that Trump would not ignore ongoing protests in Hong Kong.

Charles Schwab confirmed it will acquire rival TD Ameritrade for $26 billion in an all-stock deal. The deal, upon completion, will create a new company with more than $5 trillion in assets. TD Ameritrade shares rose 7.6% while Schwab’s stock climbed 2.3%. CNBC first reported on the deal last week.

LVMH has reached a deal to buy jeweler Tiffany for $16.2 billion in cash, or $135 per share. The acquisition, which CNBC first reported on Sunday, is expected to close in the middle of 2020. Tiffany shares advanced 6.2%.

Key Takeaways…

I took the following CNBC screenshots today regarding a tough week for retail and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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

IP Rights Plus Mergers Extend Highs

S&P 500 (SPY)

IP Rights Plus Mergers Extend Highs

Communication Services (XLC)

IP Rights Plus Mergers Extend Highs

Consumer Discretionary (XLY)

IP Rights Plus Mergers Extend Highs

Consumer Staples (XLP)

IP Rights Plus Mergers Extend Highs

Energy (XLE)

IP Rights Plus Mergers Extend Highs

Financials (XLF)

IP Rights Plus Mergers Extend Highs

Real Estate (XLRE)

IP Rights Plus Mergers Extend Highs

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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