Stocks Reach Point of Exhaustion

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks reach point of exhaustion. 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:

Stock futures open flat as S&P 500 struggles to reach February record high

U.S. stock futures were flat on Thursday night after the S&P 500 failed once again to reach its record high from February. Dow Jones Industrial Average futures were up just 20 points, or 0.1%. S&P 500 and Nasdaq 100 futures traded marginally higher as well. The S&P closed the regular session down 0.2%.

The S&P 500 (SPY) fell -0.02% (flat) today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. 6 sectors lost less than 1%. 5 sectors gained less than 1%, check the sector graph for specifics.

The Dow Jones index added +34 points (+0.12%) to close at 27,931. The Nasdaq dropped -23 points (-0.21%) to settle at 11,019.

Stocks Reach Point of Exhaustion

Stocks finished mixed on Friday as the S&P 500 failed to reach a new closing high after several attempts this week

The Dow and S&P 500 each clinched weekly gains despite Friday’s muted trading action. The S&P 500 added 0.64% for the week, its third straight weekly gain. The Dow advanced 1.8% this week. The Nasdaq, the relative laggard, climbed less than 0.1% since last Friday’s close.

S&P 500 Can’t Close Above Record Closing High

The S&P 500 was also just 0.6% below its intraday record high. The broader market index has traded above its record closing high several times this week but has fallen short of the milestone.

“With the S&P 500 failing to puncture its February 2020 highs despite a few attempts this week, many observers believe it’s a clear sign of exhaustion,” Frank Cappelleri, executive director at Instinet, said in a note.

This week’s back-and-forth action came as investors rotated between the major tech stocks — Facebook, Amazon, Apple, Alphabet, Netflix and Microsoft — and shares of companies that would benefit from the economy reopening.

Stimulus Talks Going Nowhere

In Washington, lawmakers seem unable to move forward with a coronavirus stimulus bill. This could drag on for weeks as the Senate is in recess until after Labor Day and House members have already left for the rest of the month.

House Speaker Nancy Pelosi, D-Calif., has said she will not restart talks with Republicans on the matter until they increase their aid offer by $1 trillion. White House economic advisor Larry Kudlow also told CNBC’s “Squawk on the Street” that the administration and Democrats were at a “stalemate.”

“Given the current fiscal stalemate, it is extremely unlikely that consumers receive any additional fiscal support in August. Needless to say, the outlook for September is highly dependent on fiscal policy,” said Aneta Markowska, chief economist at Jefferies, in a note.

Key Takeaway…

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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S&P 500 Sector Graph

Stocks Reach Point of Exhaustion

S&P 500 (SPY)

Stocks Reach Point of Exhaustion

Communication Services (XLC)

Stocks Reach Point of Exhaustion

Consumer Discretionary (XLY)

Stocks Reach Point of Exhaustion

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Consumer Staples (XLP)

Stocks Reach Point of Exhaustion

Energy (XLE)

Stocks Reach Point of Exhaustion

Financials (XLF)

Stocks Reach Point of Exhaustion

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Stocks Reach Point of Exhaustion

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Utilities (XLU)

S&P 500 Sector Heat Map


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