Lack of Stimulus Check Causing Concern

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the lack of stimulus check causing concern. 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 open higher as S&P 500 tries to build on last week’s gains and reach all-time high

U.S. stock futures rose on Sunday night after Wall Street logged in its third consecutive weekly gain, but fell short of breaking the all-time high set on Feb. 19. Dow Jones Industrial Average futures were up 48 points, or 0.2%. S&P 500 and Nasdaq 100 futures also traded higher by 0.2% each.

The S&P 500 (SPY) rose +0.27% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Gains ranged from +1.29% to less than 1%. Losses ranged from -1.67% to less than 1%, check the sector graph for specifics.

The Dow Jones index declined -86 points (-0.31%) to close at 27,844. The Nasdaq added +110 points (+1%) to settle at 11,129.

Lack of Stimulus Check Causing Concern

Stocks ended mixed on Monday as the S&P 500 once again failed to make a new record closing high. The tech sector recovered somewhat from last week’s weakness but persistent uncertainties from the coronavirus stimulus standstill and the presidential election coming up put a lid on investors conviction.

Shares of Alphabet and Microsoft both rose at least 0.7% to lead the Nasdaq higher. Amazon, meanwhile, gained 1.1% after Reuters reported — citing sources — the e-commerce giant wants a minority stake in cloud company Rackspace Technology. CNBC confirmed the report through a source. Shares of Rackspace advanced more than 10% on the news.

“The lack of a stimulus package is rightly causing some concern” in the market, said Liz Ann Sonders, chief investment strategist at Charles Schwab. “During the recovery phase, there was a greater boost to consumption from the unemployed cohort than there was from the employed cohort.”

“The stimulus checks that were received were put to work in the economy and consumption among the unemployed cohort went back to pre-pandemic levels, whereas the employed cohort’s consumption remains below those levels,” Sonders said.

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.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

8/17/20

S&P 500 Sector Graph

Lack of Stimulus Check Causing Concern

S&P 500 (SPY)

Lack of Stimulus Check Causing Concern

Communication Services (XLC)

Lack of Stimulus Check Causing Concern

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

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).

Consumer Discretionary (XLY)

Lack of Stimulus Check Causing Concern

Consumer Staples (XLP)

Lack of Stimulus Check Causing Concern

Energy (XLE)

Lack of Stimulus Check Causing Concern

Financials (XLF)

Lack of Stimulus Check Causing Concern

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Technology (XLK)

Lack of Stimulus Check Causing Concern

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *