Recent Rally Cools Amid Trade News

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as recent rally cools amid trade news. 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 a mixed open

U.S. stock index futures were mixed Wednesday morning after the Dow Jones Industrial Average posted a fresh record close on Tuesday.

The S&P 500 (SPY) crept up +0.07% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Consumer discretionary (XLY), consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI), real estate (XLRE) and utilities (XLU) each had minor gains of less than 1%. Energy (XLE) led decliners down with a loss of -2.04%. Communication services (XLC), materials (XLB) and technology (XLK) each had small losses of less than 1%.

The Dow Jones index was literally flat, losing -0.07 points (-0.00%) to close at 27,492. The Nasdaq had a marginal loss of -24 points (-0.29%) to settle at 8,410.

Recent Rally Cools Amid Trade News

Stocks ended flat Wednesday as the recent rally cooled amid trade news.

Stocks hit their session lows after reports said President Donald Trump and Chinese leader Xi Jinping likely won’t meet to sign a trade deal until December.

The meeting between Trump and Xi could be delayed as the two sides still need to decide on the terms and a venue, a senior administration official told CNBC. Trump is scheduled to be in London for a gathering of NATO leaders on Dec. 3 – 4, and a potential signing could happen nearby before or after that visit, CNBC reported. Reuters first reported the meeting postponement.

While corporate profits have been largely solid this earnings season, companies are lowering their earnings expectations, which could be weighing on the market. S&P 500 companies now expect to grow their earnings by less than 1% year over year, compared with a 23% growth rate just 14 months ago, according to UBS.

The Dow’s year-to-date gain now stands at nearly 18% after rallying 3.3% in the past month. The S&P 500 is up more than 22% this year after surging 4% in the past month.

Key Takeaways…

I took the following CNBC screenshots today regarding investors sentiment, investors view on risky assets and 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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11/6/19

S&P 500 Sector Graph

Recent Rally Cools Amid Trade News

S&P 500 (SPY)

Recent Rally Cools Amid Trade News

Communication Services (XLC)

Recent Rally Cools Amid Trade News

Consumer Discretionary (XLY)

Recent Rally Cools Amid Trade News

Consumer Staples (XLP)

Recent Rally Cools Amid Trade News

Energy (XLE)

Recent Rally Cools Amid Trade News

Financials (XLF)

Recent Rally Cools Amid Trade News

Real Estate (XLRE)

Recent Rally Cools Amid Trade News

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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