Lack of Fiscal Stimulus Hurting Recovery

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as lack of fiscal stimulus hurting recovery. 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 little changed following sell-off on Wall Street

Stock futures were slightly higher during overnight trading as the major averages attempted to recover from Wednesday’s heavy losses, which saw the S&P 500 tumble more than 2%. Futures contracts tied to the Dow Jones Industrial Average rose 0.13%, pointing to a 75-point gain at the open on Thursday, while S&P 500 futures advanced 0.08%.

The S&P 500 (SPY) rose +0.30% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Gains ranged from +1.12% to less than 1%. Consumer discretionary (XLY), energy (XLE) and healthcare (XLV) each suffered minor losses of less than 1%.

The Dow Jones index advanced +52 points (+0.20%) to close at 26,815. The Nasdaq added +39 points (+0.37%) to settle at 10,672.

Lack of Fiscal Stimulus Hurting Recovery

Stocks found marginal gains on Thursday as investors weighed several factors.

Apple and Microsoft shares rose 1% and 1.3%, respectively, to lead tech higher. Alphabet shares gained nearly 1% and Amazon advanced 0.7%. Netflix was up 0.5% and Facebook advanced 0.2%.

Market sentiment was kept in check, however, as first-time claims for state unemployment benefits totaled 870,000 for the week ended Sept. 19. That’s more than a Dow Jones estimate of 850,000. Continuing claims — which include those who have received unemployment benefits for at least two straight weeks — declined slightly but were still higher than forecast.

The Census Bureau reported that new home sales in the U.S. totaled just over 1 million in August. Economists polled by Dow Jones expected a gain of 898,000.

Wall Street is grappling with a lack of new fiscal stimulus, which several economists and the Federal Reserve argue is needed for the economic recovery to continue.

Traders have had a tough month in September, with the major market benchmarks falling sharply as tech shares lose steam.

So far in September the S&P 500 has declined 7.3%, while the Dow has shed 5.7%. The Nasdaq Composite has been the relative underperformer, registering a loss of 9.4% as investors rotate out of big tech. Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft each are down at least 9.9% in September.

Key Takeaways…

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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9/24/20

S&P 500 Sector Graph

Lack of Fiscal Stimulus Hurting Recovery

S&P 500 (SPY)

Lack of Fiscal Stimulus Hurting Recovery

Communication Services (XLC)

Lack of Fiscal Stimulus Hurting Recovery

Consumer Discretionary (XLY)

Lack of Fiscal Stimulus Hurting Recovery

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Consumer Staples (XLP)

Lack of Fiscal Stimulus Hurting Recovery

Energy (XLE)

Lack of Fiscal Stimulus Hurting Recovery

Financials (XLF)

Lack of Fiscal Stimulus Hurting Recovery

Real Estate (XLRE)

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Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Lack of Fiscal Stimulus Hurting Recovery

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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