May Pessimism Turns June Optimism

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as May pessimism turns June 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:

Dow futures rise triple digits despite Trump’s China tariff threat

U.S. stock index futures were slightly higher Tuesday morning despite comments from President Donald Trump on trade war with China. At around 01:36 a.m. ET, Dow futures rose 45 points, indicating a positive open of more than 59 points. Futures of S&P and Nasdaq were also seen slightly higher.

The S&P 500 (SPY) slipped just below the flatline (-0.04%) today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE) and technology (XLK) each had minor gains of less than 1%. Healthcare (XLV), industrials (XLI), materials (XLB) and utilities (XLU) each had small losses of less than 1%.

The Dow Jones index lost 14 points (-0.05%) to close at 26,048. The Nasdaq subtracted 0.60 point (-0.01%) to settle at 7,822.

May Pessimism Turns June Optimism

Stocks finished in the red by the slimmest margins on Tuesday, taking a pause from a strong June rebound after an ugly May. The major indexes are all up almost 5%. In May, the Dow and S&P 500 dropped more than 6% and the Nasdaq nearly 8%. When reading the above CNBC article, the following quote stuck out regarding current market sentiment, “The potential headwind is what happens with sentiment. Sentiment turned so negative in May and now, as stock rebound in June, we’re seeing pessimism being replaced with optimism. If it comes in too fast, that can shift from being a tailwind for stocks to a headwind,” said Willie Delwiche, investment strategist at Baird.

Key Takeaway…

I took the following CNBC screenshot today regarding driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable 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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S&P 500 Sector Graph

May Pessimism Turns June Optimism

S&P 500 (SPY)

May Pessimism Turns June Optimism

Communication Services (XLC)

May Pessimism Turns June Optimism

Consumer Discretionary (XLY)

May Pessimism Turns June Optimism

Consumer Staples (XLP)

May Pessimism Turns June Optimism

Energy (XLE)

May Pessimism Turns June Optimism

Financials (XLF)

May Pessimism Turns June Optimism

Real Estate (XLRE)

May Pessimism Turns June Optimism

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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