Stocks Fight Back Against August Selloff

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks fight back against August selloff. 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 higher open

U.S. stock index futures point to a higher open on Monday morning. At around 01:30 a.m. ET, Dow futures rose 146 points, indicating a positive open of more than 172.99 points. Futures on the S&P and Nasdaq were both also higher.

The S&P 500 (SPY) popped higher by +1.21% today. All 11 sectors finished in the green. Energy (XLE) led the market higher with a +2.21% gain. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), financials (XLF) and technology (XLK) each had gains of more than 1%. Healthcare (XLV), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) each enjoyed small gains of less than 1%.

The Dow Jones index climbed +249 points (0.96%) to close at 26,135. The Nasdaq added +106 points (+1.35%) to settle at 8,002.

Stocks Fight Back Against August Selloff

Stocks continued its recent comeback on Monday after posting its worst day in 2019 last Wednesday. Helping the rally was an increase in the 10 year bond yield to 1.6%, giving bank stocks a lift.

The People’s Bank of China unveiled an interest-rate reform over the weekend aimed at lowering borrowing costs for Chinese companies. In Germany, the government is reportedly preparing fiscal stimulus measures in case the country’s economy falls into a recession. Economic growth in China and Germany has slowed down this year amid tighter trade conditions, leading investors to rush into safe havens like the 10-year Treasury note.

Last week, the 10-year yield fell to its lowest level in more than three years and briefly traded below its 2-year counterpart. This is referred to as a yield-curve inversion and is seen by traders as a potential signal that a recession may be on the horizon.

Key Takeaways…

I took the following CNBC screenshots today regarding the Dow vs. the 10 year bond, driving the rally, sector snapshot so far in Q3, sector breakdown so far in 2019 (YTD) 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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S&P 500 Sector Graph

Stocks Fight Back Against August Selloff

S&P 500 (SPY)

Stocks Fight Back Against August Selloff

Communication Services (XLC)

Stocks Fight Back Against August Selloff

Consumer Discretionary (XLY)

Stocks Fight Back Against August Selloff

Consumer Staples (XLP)

Stocks Fight Back Against August Selloff

Energy (XLE)

Stocks Fight Back Against August Selloff

Financials (XLF)

Stocks Fight Back Against August Selloff

Real Estate (XLRE)

Stocks Fight Back Against August Selloff

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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