Tariff Delay Spurs Market Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as tariff delay spurs market rally. 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 slightly lower open

U.S. stock index futures were slightly lower Tuesday morning, after losses in the previous session fueled concerns about the state of the economy. At around 02:50 a.m. ET, Dow futures dipped 43 points, indicating a negative open of more than 47 points. Futures on the S&P and Nasdaq were both slightly lower.

The S&P 500 (SPY) rose +1.50% today. All 11 sectors landed in positive territory. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB) and technology (XLK) each had gains of more than 1%. Energy (XLE), real estate (XLRE) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index rallied +372 points (+1.44%) to close at 26,279. The Nasdaq advanced +152 points (+1.95%) to settle at 8,016.

Tariff Delay Spurs Market Rally

Stocks popped higher Tuesday as Washington decided to delay the latest round of tariffs. The US Trade Rep. announced that certain products including cell phones and clothing are removed from the tariff list. “Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the statement from the USTR said.

The widely watched 2-year to 10-year yield spread is now just 2 basis points, according to FactSet. A yield-curve inversion has been a reliable recession indicator watched by the Federal Reserve as well as many market experts.

Key Takeaways…

I took the following CNBC screenshots today regarding political turmoil 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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8/13/19

S&P 500 Sector Graph

Tariff Delay Spurs Market Rally

S&P 500 (SPY)

Tariff Delay Spurs Market Rally

Communication Services (XLC)

Tariff Delay Spurs Market Rally

Consumer Discretionary (XLY)

Tariff Delay Spurs Market Rally

Consumer Staples (XLP)

Tariff Delay Spurs Market Rally

Energy (XLE)

Tariff Delay Spurs Market Rally

Financials (XLF)

Tariff Delay Spurs Market Rally

Real Estate (XLRE)

Tariff Delay Spurs Market Rally

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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