Stocks Resilient Against Middle East Tensions

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks resilient against Middle East tensions. 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 drop 200 points as Middle East tensions remain high

U.S. stock index futures were sharply lower Monday morning, amid ongoing geopolitical tensions. Around 5 a.m. ET, Dow futures indicated a drop of about 200 points at the opening bell. Futures on the S&P 500 and Nasdaq indexes were also lower. The Dow, S&P, and Nasdaq had their worst trading day in a month on Friday.

The S&P 500 (SPY) gained +0.35% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Communication services (XLC) led advancers higher with a +1.34% gain. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), healthcare (XLV), industrials (XLI), real estate (XLRE), technology (XLK) and utilities (XLU) each enjoyed small gains of less than 1%. Financials (XLF) and materials (XLB) each suffered minor losses of less than 1%.

The Dow Jones index added +68 points (+0.24%) to close at 28,703. The Nasdaq landed in positive territory by +50 points (+0.56%) to settle at 9,071.

Stocks Resilient Against Middle East Tensions

Stocks found positive ground at closing as investors shrugged off Middle East tensions.

Monday’s gains were in contrast to Friday’s sharp decline. The Dow and S&P 500 had their worst trading day in a month on Friday, the morning after President Donald Trump approved a U.S. airstrike in Baghdad that killed top Iranian Gen. Qasem Soleimani.

Trump said Sunday he could slap sanctions on Iraq after its parliament passed a resolution calling for the government to expel foreign troops from the country. “We have a very extraordinarily expensive airbase that’s there. It cost billions of dollars to build. Long before my time. We’re not leaving unless they pay us back for it,” Trump said.

Iran said Sunday it would not abide by the uranium-enrichment limits set by the 2015 nuclear deal.

Investors have loaded up on traditional safe havens such as gold and Treasurys as U.S.-Iran tensions rose.

On Monday, gold futures hit their highest level in more than six years. The benchmark 10-year Treasury yield hovered around 1.8% after starting 2020 trading above 1.9%. Yields move inversely to prices.

Key Takeaways…

I took the following CNBC screenshots today regarding markets after military action, retail woes, Santa Claus rally, earnings growth and driving the action:

Notable S&P 500 Movers…

I’ve highlighted below 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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1/6/20

S&P 500 Sector Graph

Stocks Resilient Against Middle East Tensions

S&P 500 (SPY)

Stocks Resilient Against Middle East Tensions

Communication Services (XLC)

Stocks Resilient Against Middle East Tensions

Consumer Discretionary (XLY)

Stocks Resilient Against Middle East Tensions

Consumer Staples (XLP)

Stocks Resilient Against Middle East Tensions

Energy (XLE)

Stocks Resilient Against Middle East Tensions

Financials (XLF)

Stocks Resilient Against Middle East Tensions

Real Estate (XLRE)

Stocks Resilient Against Middle East Tensions

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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