Lessening Geopolitical Risks Push Market Higher

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as lessening geopolitical risks push market higher. 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 mixed open

U.S. stock index futures were mixed Friday morning. At around 2:30 a.m. ET, Dow futures dipped 17 points, indicating a positive open of more than 2 points. Futures on the S&P and Nasdaq were pointing in opposite directions.

The S&P 500 (SPY) rose by +0.49% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) each suffered small losses of less than 1%. Communication services (XLC), healthcare (XLV) and technology (XLK) enjoyed minor gains of less than 1%.

The Dow Jones index popped +78 points higher (+0.28%) to close at 28,455. The Nasdaq climbed +37 points (+0.42%) to close at 8,924.

Lessening Geopolitical Risks Push Market Higher

Stocks ended higher Friday as lessening geopolitical risks guide market higher.

President Trump also tweeted some encouraging news on the China trade front:

Meanwhile, consumer spending growth for the third quarter was revised higher to 3.2% from 2.9%. Sentiment among consumers also remained strong in December.

The S&P 500 was up more than 1.5% for the week and posted its fourth consecutive weekly gain. The Dow and Nasdaq were up 1.2% and 2.1%, respectively, for the week. The S&P 500 and Nasdaq also had their best weekly performance since August.

“You’re seeing the geopolitical risk that was in the market seep out now,” said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management. “You had the Fed backstopping risk throughout the year but you had those geopolitical worries. Now, they’re abating and the market is moving higher.”

Key Takeaways…

I took the following CNBC screenshots today regarding China headlines, Nike earnings, healthy consumer, weakness elsewhere and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some some 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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12/20/19

S&P 500 Sector Graph

Lessening Geopolitical Risks Push Market Higher

S&P 500 (SPY)

Lessening Geopolitical Risks Push Market Higher

Communication Services (XLC)

Lessening Geopolitical Risks Push Market Higher

Consumer Discretionary (XLY)

Lessening Geopolitical Risks Push Market Higher

Consumer Staples (XLP)

Lessening Geopolitical Risks Push Market Higher

Energy (XLE)

Lessening Geopolitical Risks Push Market Higher

Financials (XLF)

Lessening Geopolitical Risks Push Market Higher

Real Estate (XLRE)

Lessening Geopolitical Risks Push Market Higher

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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