Stocks Cannot Trend Higher Without Decreased Cases

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks cannot trend higher without decreased cases. 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:

Dow futures point to a lower open after market’s rebound from massive coronavirus sell-off

Stock futures pared earlier gains to trade lower early Tuesday morning, following the market’s rebound from its deep rout triggered by the coronavirus pandemic. Futures on the Dow Jones Industrial Average were 96 points lower, pointing to an implied opening dip of around 121 points at Tuesday’s open.

The S&P 500 (SPY) dropped -1.60% today. Sector decliners led advancers 10 to 1 as shown below in the sector graph. Losses in decliners ranged from -4% to losing less than 1%. Check sector graph for specifics. Energy (XLE) rose +1.54% today.

The Dow Jones index lost -410 points (-1.84%) to close at 21,917. The Nasdaq finished in the red by -74 points (-0.95%) to settle at 7,700.

Stocks Cannot Trend Higher Without Decreased Cases

Stocks ended lower on Tuesday as investor gripped with several issues.

Equities fell while digesting a number of issues stemming from the coronavirus pandemic:

  • New York Gov. Andrew Cuomo said coronavirus cases in the state jumped by 14% overnight to more than 75,000.
  • Goldman Sachs said that the economy would go through an unprecedented plunge in the second quarter, but that the recovery would then be the fastest in history.
  • U.S. consumer confidence posted a big decline. The Conference Board said Tuesday its consumer confidence index dropped to 120 this month from 132.6 in February.
  • Bank stock such as JPMorgan Chase, Citigroup and Bank of America continued to drop. JPMorgan and Citi fell 3.6% and 4.5%, respectively, while Bank of America lost 3.7%. The stocks have been under big pressure this week from declining rates.

Investors continued to grapple with the worsening outbreak in the U.S. as the confirmed cases rose to more than 177,000, according to data from Johns Hopkins University. The U.S. has also officially become the country most affected. Trump said Sunday he hopes the country will “be well on our way to recovery” by June 1.

“It’s hard to envision the equity market trending higher without some visibility and the curve of new cases begins to flatten out,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Perhaps we’ll get some of those characteristics as you look through the earnings season.”

“We do not think this is going to be a V-shaped recovery; we think it’s more of a U-shaped recovery,” said Sandven. “The risk of a recession is still pretty high, and we’re likely to be in a recession right now.”

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers.

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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3/31/20

S&P 500 Sector Graph

Stocks Cannot Trend Higher Without Decreased Cases

S&P 500 (SPY)

Stocks Cannot Trend Higher Without Decreased Cases

Communication Services (XLC)

Stocks Cannot Trend Higher Without Decreased Cases

Consumer Discretionary (XLY)

Stocks Cannot Trend Higher Without Decreased Cases

Consumer Staples (XLP)

Stocks Cannot Trend Higher Without Decreased Cases

Energy (XLE)

Stocks Cannot Trend Higher Without Decreased Cases

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

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).

Financials (XLF)

Stocks Cannot Trend Higher Without Decreased Cases

Real Estate (XLRE)

Stocks Cannot Trend Higher Without Decreased Cases

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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