No Rate Hikes Extend Bull Run

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after no rate hikes extend bull run. 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 slightly higher open

U.S. stock index futures were mixed Wednesday morning, as investors wait to hear from the Federal Reserve.

The S&P 500 (SPY) added +0.29% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), healthcare (XLV), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) experienced small gains of less than 1%. Energy (XLE), financials (XLF) and real estate suffered minor losses of less than 1%.

The Dow Jones index gained +29 points (+0.11%) to close at 27,911. The Nasdaq advanced +37 points (+0.44%) to settle at 8,654.

No Rate Hikes Extend Bull Run

Stocks gained ground Wednesday as the Federal Reserve indicated no likely rate hikes in 2020.

The Fed kept interest rates unchanged on Wednesday, following three decreases in a row. The central bank also indicated it does not expect any policy changes through at least 2020.

Fed Chair Jerome Powell said in a news conference the central bank would have to see a persistent rise in inflation before hiking rates once again. The Fed had to cut rates multiple times this year to make up for raising rates too far at the end of 2018, a move that slowed the economy and caused stock prices to drop.

“In order to move rates up, I would want to see inflation that’s persistent and that’s significant,” he said. “A significant move up in inflation that’s also persistent before raising rates to address inflation concerns. That’s my view.”

Key Takeaways…

I took the following CNBC screenshots today regarding last year’s dismal December and closing bell big board:

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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12/11/19

S&P 500 Sector Graph

No Rate Hikes Extend Bull Run

S&P 500 (SPY)

No Rate Hikes Extend Bull Run

Communication Services (XLC)

No Rate Hikes Extend Bull Run

Consumer Discretionary (XLY)

No Rate Hikes Extend Bull Run

Consumer Staples (XLP)

No Rate Hikes Extend Bull Run

Energy (XLE)

No Rate Hikes Extend Bull Run

Financials (XLF)

No Rate Hikes Extend Bull Run

Real Estate (XLRE)

No Rate Hikes Extend Bull Run

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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