Strength of Consumer Reflected in Earnings

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as strength of consumer reflected in earnings. 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 a higher open

U.S. stock index futures moved higher on Wednesday morning. At around 01:40 a.m. ET, Dow futures rose 63 points, indicating a positive open of more than 35 points. Futures on the S&P and Nasdaq were also higher. Wall Street closed lower for the first time in four sessions on Tuesday.

The S&P 500 (SPY) rose +0.82% today. All 11 sectors finished in positive territory as shown below in the sector graph. Consumer discretionary (XLY) and technology (XLK) led the market higher, each with gains of more than 1%. Communication services (XLC), consumer staples (XLP), energy (XLE), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) each enjoyed minor gains of less than 1%.

The Dow Jones index popped +240 points higher (+0.93%) to close at 26,202. The Nasdaq advanced +71 points (+0.90%) to settle at 8,020.

Strength of Consumer Reflected in Earnings

Stocks climbed higher on Wednesday on the backs of strong earnings from Target and Lowes, showing the strength of the US consumer.

Target shares surged more than 20% to a record after the retailer posted second-quarter results that topped analyst expectations. The company’s same-store sales, a key metric for retailers, expanded by 3.4%. Analysts expected growth of 2.9%.

Lowe’s jumped 10.4% on its second-quarter earnings report. CEO Marvin Ellison said the company capitalized on strong “holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results.”

Investors on Wednesday digested minutes from the Federal Reserve‘s meeting. The minutes showed the Fed has no “pre-set course” for cutting rates. The Fed cut rates by 25 basis points in July, while signaling that it was only a “midcycle adjustment” and the central bank was not returning to the stimulus era.

Key Takeaways…

I took the following CNBC screenshots today regarding retail guidance, FOMC minutes 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

Strength of Consumer Reflected in Earnings

S&P 500 (SPY)

Strength of Consumer Reflected in Earnings

Communication Services (XLC)

Strength of Consumer Reflected in Earnings

Consumer Discretionary (XLY)

Strength of Consumer Reflected in Earnings

Consumer Staples (XLP)

Strength of Consumer Reflected in Earnings

Energy (XLE)

Strength of Consumer Reflected in Earnings

Financials (XLF)

Strength of Consumer Reflected in Earnings

Real Estate (XLRE)

Strength of Consumer Reflected in Earnings

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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