Key Issue Resolved Signaling Trade Optimism

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as key issue resolved signaling trade optimism. 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 higher Monday morning as investors focus on China-U.S. trade developments. At around 2 a.m. ET, Dow futures rose 85 points, indicating a positive open of more than 75 points. Futures on the S&P and Nasdaq were also higher. On Friday, U.S.

The S&P 500 (SPY) rose +0.70% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Materials (XLB), real estate (XLRE) and technology (XLK) led advancers higher with +1% gains. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), industrials (XLI) and utilities (XLU) each enjoyed small gains of less than 1%. Healthcare (XLV) suffered a minor loss of less than 1%.

The Dow Jones index added +83 points (+0.29%) to close at 28,907. The Nasdaq jumped +95 points (+1.04%) to settle at 9,273.

Key Issue Resolved Signaling Trade Optimism

Stocks continued the march higher as the US removed China from the list of currency manipulating countries, building optimism towards a trade agreement.

The decision to take China out of the currency manipulator list comes more than five months after the country was added to it.

The deal, which is scheduled for signing on Wednesday, is expected to lower tariffs on some Chinese-made goods, as well as increase China’s purchases of U.S. agricultural products. After a lengthy translation process in recent weeks, Treasury Secretary Steven Mnuchin said China’s commitments remained unchanged. Mnuchin noted on Sunday that this is “a very, very extensive agreement.”

Key Takeaways…

I took the following screenshot today regarding driving the action and 6 ETF themes driving gains in 2020…

Here are the six ETF themes that will drive gains in 2020, industry leaders say

It’ll be an interesting year for exchange-traded funds. ETF industry leaders are watching a handful of themes they see gaining traction in 2020, two such leaders – John Davi, founder and chief investment officer at Astoria Portfolio Advisors, and Armando Senra, head of iShares Americas at BlackRock – told CNBC’s “ETF Edge” on Monday.

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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1/13/20

S&P 500 Sector Graph

Key Issue Resolved Signaling Trade Optimism

S&P 500 (SPY)

Key Issue Resolved Signaling Trade Optimism

Communication Services (XLC)

Key Issue Resolved Signaling Trade Optimism

Consumer Discretionary (XLY)

Key Issue Resolved Signaling Trade Optimism

Consumer Staples (XLP)

Key Issue Resolved Signaling Trade Optimism

Energy (XLE)

Key Issue Resolved Signaling Trade Optimism

Financials (XLF)

Key Issue Resolved Signaling Trade Optimism

Real Estate (XLRE)

Key Issue Resolved Signaling Trade Optimism

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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