New High Wipes Out Coronavirus Losses
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as new high wipes out coronavirus losses. 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 were flat in overnight trading on Monday after the S&P 500 once again failed to reach a record, a level set before the coronavirus crisis hit. Futures on the Dow Jones Industrial Average dipped about 10 points. The S&P 500 and the Nasdaq 100 futures were both little changed.
The S&P 500 (SPY) rose +0.23% today. Sector decliners led advancers 7 to 4 as shown below in the sector graph. Losses ranged from -1.26% to less than 1%. 4 sectors had gains of less than 1%, check the sector graph for specifics.
The Dow Jones index declined -66 points (-0.24%) to close at 27,778. The Nasdaq added +81 points (+0.73%) to settle at 11,210.
New High Wipes Out Coronavirus Losses
Stocks finished mixed on Tuesday as excitement from good earnings reports from Home Depot as well as Walmart was capped from continuing uncertainties regarding coronavirus stimulus relief. However, the S&P 500 ended with a new closing record high, wiping out all of its coronavirus losses.
An Incredible Recovery
The broader market index climbed 0.2% to 3,389.78, a record close. It also notched an intraday all-time high, reaching 3,395.06 earlier in the day. The S&P 500′s move into record territory came after the index flirted with its all-time closing high for more than a week. It also confirms the start of a new bull market.
Earlier this year, the S&P 500 tumbled more than 30% from its February record as the coronavirus pandemic sent profit expectations and economic activity tanking. However, the benchmark index for the U.S. stock market did not stay down for long.
Since hitting a low on March 23, the S&P 500 has skyrocketed more than 54%. Those gains have been largely driven by sharp advances in Big Tech shares. Facebook is up more than 27% year to date and Alphabet has rallied over 16% in that time period. Amazon, meanwhile, has popped more than 79% this year and Netflix is up 52%. Apple and Microsoft are up 34.1% and 57.4%, respectively, in 2020.
Dems and Republican Remained Deadlocked
Treasury Secretary Steven Mnuchin said Democrats are not willing to make a “reasonable” deal on a new coronavirus bill.
“There’s no question that the economic numbers are doing better. So, as we reopen the economy, we see things are getting better,” Mnuchin told CNBC. “But the president wants us to do more. He wants us to provide money for kids and jobs, and a second round of the PPP and direct payments are a clear part of that.”
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
S&P 500 (SPY)
Communication Services (XLC)
Consumer Discretionary (XLY)
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 Staples (XLP)
Real Estate (XLRE)
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S&P 500 Sector Heat Map