Stocks Soar Alongside Senate Spending Bill
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after stocks soar alongside Senate spending bill. 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:
Brendan McDermid | Reuters But these moves are often short-lived. The S&P 500 averaged a return of 2.1 percent a month after a shutdown and traded positive 80 percent of the time. “Anyone with capital markets experience knows that US government shutdowns are largely meaningless in the context of financial asset values,” said Nicholas Colas, co-founder of DataTrek Research, in a note.
The S&P 500 (SPY) rose 0.81% today as stocks soar alongside Senate spending bill. S&P sector advancers led decliners by 9 to 1. Sector advancers were led by energy (XLE) +2.20% and consumer discretionary (XLY) +1.11%. Consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI), real estate (XLRE), technology (XLK) and utilities (XLU) all were positive by less than 1%. Only materials (XLB) finished in the red by less than 1%.
The Dow Jones index kept going higher on the year, advancing another 142 points closing at 26,214. The Nasdaq which was helped by technology advanced 71 points finishing at 7,408.
All 3…Dow, S&P 500 and Nasdaq reached all time highs today. The Senate passed a short term spending bill to keep the government open thru February 8th. Historically, government shutdowns are meaningless to financial markets, investors know that democrats and republicans will eventually come to a compromise. Corporate earnings season is underway, as of Friday 68% of S&P 500 companies have surpassed earnings estimates and 85% have beaten sales estimates.
8 out of 10 top 10 holdings in the S&P 500 (SPY) rose 1% or more. MSFT, AMZN, FB, BRK.B, JPM, XOM and GOOGL all found a final bid of more than 1% higher. Consumer discretionary favorites HD and NFLX both found strong gains of over 1%. V and VZ helped the tech sector finish positive with 1% or more gains in the green.
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.
S&P 500 Sector Graph
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map