Strong Earnings Guide Fresh Record Highs
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after strong earnings guide fresh record highs. 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:
“Stocks will continue to benefit from the earnings driven bull market that we have experienced over the past 18 months both in the U.S. and abroad,” said Marc Chaikin, CEO of Chaikin Analytics. Thus far, stocks have responded positively to quarterly results, Chaikin added. The calendar fourth-quarter earnings season is off to a good start.
The S&P 500 (SPY) added 0.22% today as strong earnings guide fresh record highs. S&P sector advancers led decliners by 6 to 4. Sector advancers were led by real estate (XLRE) +1.54%. Consumer discretionary (XLY), financials (XLF), industrials (XLI), technology (XLK) and utilities (XLU) all gained less than 1%. Consumer staples (XLP), energy (XLE), healthcare (XLV) and materials (XLB) all were in the red by less than 1%.
The Dow Jones index barely finished below the break even line, losing 3 points closing at 26,210. The Nasdaq, helped by Netflix’s 10% gain, advanced 52 points finishing at 7,460.
Both the S&P 500 and the Nasdaq closed at fresh record highs today. The Nasdaq’s gains were buoyed by a 10% jump in Netflix shares after the streaming giant reported better than expected subscriber growth. Dow components Johnson & Johnson, PG and Travelers all beat on EPS and revenue estimates. According to Thomson Reuters, as of Tuesday, 76% of S&P 500 companies that have reported quarterly earnings have surpassed earnings estimates and 84% of those companies have beaten sales estimates.
Both AMZN +2% and NFLX +10% helped push consumer discretionary higher. FB +2 and GOOGL +1% led tech in the green. Finally, both real estate (XLRE) and utilities (XLU) at last got some love with all top 10 holdings in both sectors finished in the green. Both sectors are interest rate sensitive and have been hit hard recently because of rising interest rates.
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