Stocks Enjoy Sigh of Relief Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks enjoy sigh of relief rally. 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 fall more than 200 points following attack on airbase in Iraq

Dow Jones Industrial Average futures fell more than 200 points following reports that rockets were fired at an Iraqi airbase that hosts American troops. Al Asad airbase in western Iraq has come under attack, US military officials told NBC News. Multiple projectiles hit the airbase but it was not clear whether it was rockets or missiles yet.

The S&P 500 (SPY) rose by +0.49% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Technology (XLK) led advancers with a +1.07% gain. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB) and real estate (XLRE) each enjoyed minor gains of less than 1%. Energy (XLE) led decliners down with a -1.65% loss. Utilities (XLU) suffered a small loss of less than 1%.

The Dow Jones index added +161 points (+0.56%) to close at 28,745. The Nasdaq was in the green by +60 points (+0.67%) to settle at 9,129.

Stocks Enjoy Sigh of Relief Rally

Stocks ended in positive territory Wednesday as President Trump’s address eased investors worries of US Iran tensions.

Trump said Iran appeared to be “standing down” after that nation attacked the Ain al-Asad airbase overnight. However, he added the U.S. will “immediately impose additional punishing economic sanctions on the Iranian regime.” News of the attack sent stock futures tumbling overnight.

“Now, as the president has to some degree defused some of the anxiety, so you’re getting … a little bit of a sigh of relief rally here,” Art Cashin, director of floor operations at the NYSE for UBS.

Wall Street has history on its side as previous U.S.-Iran crises have seldom led to a prolonged market downturn. Data from Barclays shows that the S&P 500 averages a gain of nearly 3% three months after a confrontation between the two countries. That average gain grows to 5.5% after six months.

Key Takeaway…

Evercore’s Roger Altman: Iran has sent a ‘dovish message’

Roger Altman, founder and senior chairman of Evercore, joins CNBC’s “Squawk Alley” team to discuss what to expect as tensions rise between Iran and the United States.

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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1/8/20

S&P 500 Sector Graph

Stocks Enjoy Sigh of Relief Rally

S&P 500 (SPY)

Stocks Enjoy Sigh of Relief Rally

Communication Services (XLC)

Stocks Enjoy Sigh of Relief Rally

Consumer Discretionary (XLY)

Stocks Enjoy Sigh of Relief Rally

Consumer Staples (XLP)

Stocks Enjoy Sigh of Relief Rally

Energy (XLE)

Stocks Enjoy Sigh of Relief Rally

Financials (XLF)

Stocks Enjoy Sigh of Relief Rally

Real Estate (XLRE)

Stocks Enjoy Sigh of Relief Rally

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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

Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

 

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