Strong Earnings Alongside Data Powers Bulls

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as strong earnings alongside data powers bulls. 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 jumps 250 points to a record after strong economic data, Morgan Stanley rises

Stocks rose on Thursday to fresh record highs after Morgan Stanley reported quarterly figures that easily topped analyst expectations while investors digested solid data on the U.S. economy. The Dow Jones Industrial Average gained 253 points, or 0.9%. The S&P 500 climbed 0.8% and broke above 3,300 for the first time.

The S&P 500 (SPY) rose +0.84% today. Sector advancers led decliners 11 to 0 as shown below in the sector graph. Technology (XLK) led advancers higher with a gain of 1.34%. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE), healthcare (XLV), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each enjoyed minor gains of less than 1%.

The Dow Jones index added +267 points (+0.92%) to close at 29,297. The Nasdaq gained +98 points (1.06%) to settle at 9,357.

Strong Earnings Alongside Data Powers Bulls

Stocks landed in positive territory Thursday as strong earnings along with data powered stocks higher.

Morgan Stanley’s three main businesses — investment management, wealth management and trading — all produced more revenue than expected in the previous quarter. The company’s stock jumped more than 6.5%. Other bank stocks, including Goldman Sachs and J.P. Morgan Chase, followed Morgan Stanley higher.

So far, the earnings season is off to a solid start. Around 7% of S&P 500 companies have reported earnings thus far, according to FactSet data. Of those companies, 76.5% have posted better-than-expected earnings.

Strong economic data also lifted sentiment on Wall Street. Weekly jobless claims unexpectedly dropped by 10,000 to 204,000. Economists polled by Reuters expected a print of 216,000. Meanwhile, retail sales climbed by 0.3% in December, matching expectations. The Philadelphia Federal Reserve business index also jumped to 17 in January from 2.4 in December.

Key Takeaways…

I took the following the CNBC screenshots today regarding sector snapshot, banks this week and driving the action:

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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1/16/20

S&P 500 Sector Graph

Strong Earnings Alongside Data Powers Bulls

S&P 500 (SPY)

Strong Earnings Alongside Data Powers Bulls

Communication Services (XLC)

Strong Earnings Alongside Data Powers Bulls

Consumer Discretionary (XLY)

Strong Earnings Alongside Data Powers Bulls

Consumer Staples (XLP)

Strong Earnings Alongside Data Powers Bulls

Energy (XLE)

Strong Earnings Alongside Data Powers Bulls

Financials (XLF)

Strong Earnings Alongside Data Powers Bulls

Real Estate (XLRE)

Strong Earnings Alongside Data Powers Bulls

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

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