Natural Bounce Back From Coronavirus Selloff

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks have natural bounce back from coronavirus selloff. 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 despite coronavirus fears

U.S. stock index futures pointed to a higher open on Monday as Wall Street looks set to shrug off fears over the spread of the novel coronavirus. At around 2:20 a.m. ET, Dow futures were up by 132 points and implied a positive open of more than 127 points, while futures on the S&P 500 and Nasdaq were also higher.

The S&P 500 (SPY) rose +0.73% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Technology (XLK), materials (XLB) and communication services (XLC) led advancers higher with gains of more than 1%. Consumer discretionary (XLY), consumer staples (XLP), financials (XLF), healthcare (XLV), real estate (XLRE) and utilities (XLU) each enjoyed minor gains of less than 1%. Energy (XLE) had a -1.31% loss on the day. Industrials (XLI) suffered a small loss of less than 1%.

The Dow Jones index added +143 points (+0.51%) to close at 28,399. The Nasdaq climbed +122 points (+1.34%) to settle at 9,273.

Natural Bounce Back From Coronavirus Selloff

Stocks landed in the green Monday rebounding from a selloff based on coronavirus fears.

The major averages reached their session highs after the Institute for Supply Management said its manufacturing gauge showed activity in the sector expanded. Economists polled by Dow Jones expected a contraction in manufacturing activity for January.

The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.

“We had that sharp sell-off on Friday, so it’s natural to see a bounce-back,” said Keith Lerner, chief market strategist at Truist/SunTrust Advisory. “But we think this corrective period has a bit more to go.”

Alphabet set to report fourth quarter earnings Monday

Google parent company Alphabet is set to report earnings after the bell Monday. Here’s what analysts expect for the company’s fourth quarter of the fiscal 2019 year: Earnings: $12.53 per share, per Refinitiv consensus estimates. Revenue: $46.94 billion, per Refinitiv. Traffic acquisition costs: $8.50 billion, per StreetAccount estimates.

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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S&P 500 Sector Graph

Natural Bounce Back From Coronavirus Selloff

S&P 500 (SPY)

Natural Bounce Back From Coronavirus Selloff

Communication Services (XLC)

Natural Bounce Back From Coronavirus Selloff

Consumer Discretionary (XLY)

Natural Bounce Back From Coronavirus Selloff

Consumer Staples (XLP)

Natural Bounce Back From Coronavirus Selloff

Energy (XLE)

Natural Bounce Back From Coronavirus Selloff

Financials (XLF)

Natural Bounce Back From Coronavirus Selloff

Real Estate (XLRE)

Natural Bounce Back From Coronavirus Selloff

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).


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