Post Election Rally Tap the Brakes

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as post election rally tap the brakes. 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:

U.S. stock futures fall slightly amid post-election rally

U.S. stock futures fell slightly on Thursday evening as Wall Street eyed its best week since April even as the results of the presidential election remained unclear. Futures tied to the Dow Jones Industrial Average lost about 115 points, while those for the S&P 500 and the Nasdaq 100 were down roughly 0.4% and 0.2%, respectively.

The S&P 500 (SPY) fell just below the flat line, losing -0.03% today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Losses ranged from -2.16% to less than 1%. 5 sectors finished with gains of less than 1%, check the sector graph for specifics.

The Dow Jones index lost -66 points (-0.24%) to close at 28,323. The Nasdaq added +4 points (+0.04%) to settle at 11,895.

Post Election Rally Tap the Brakes

Stocks ended mixed on Friday as investors took a breather from the post election rally, that recouped last week’s steep drop.

Despite the uncertainty around the presidential vote, Wall Street notched its best weekly performance since April. The S&P 500 and Nasdaq jumped 7.3% and 9%, respectively, for the week. The Dow rose 6.9% this week. The S&P 500 also posted its biggest election week gain since 1932.

“The market is just getting more comfortable with the outcome of a divided government, where we see a continuation of political gridlock [and] no meaningful changes on tax policy,” said Dan Eye, head of asset allocation and equity research at Fort Pitt Capital Group.

Alicia Levine, chief strategist at BNY Mellon Investment Management, said that the strength of tech stocks earlier this week was due in part to their strong earnings performance and resiliency in the case of new economic restrictions in the United States during the winter to slow the spread of the coronavirus.

Jobs Report Beats Expectations

The Labor Department said the U.S. unemployment rate fell to 6.9% in October from 7.9%. Economists polled by Dow Jones expected the rate to dip to 7.7%. The U.S. economy also added 638,000 jobs last month, topping an estimate of 530,000.

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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11/6/20

S&P 500 Sector Graph

Post Election Rally Tap the Brakes

S&P 500 (SPY)

Post Election Rally Tap the Brakes

Communication Services (XLC)

Post Election Rally Tap the Brakes

Consumer Discretionary (XLY)

Post Election Rally Tap the Brakes

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Consumer Staples (XLP)

Post Election Rally Tap the Brakes

Energy (XLE)

Post Election Rally Tap the Brakes

Financials (XLF)

Post Election Rally Tap the Brakes

Real Estate (XLRE)

Post Election Rally Tap the Brakes

Healthcare (XLV)

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Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Post Election Rally Tap the Brakes

Utilities (XLU)

S&P 500 Sector Heat Map

 

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