Tech Business Models Can Withstand Coronavirus

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as tech business models can withstand coronavirus. 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 futures rise as index tries for fifth straight day of gains

Stock futures rose in overnight trading on Wednesday as earnings season gets underway, giving investors a clearer picture of the overall health of corporate America. Futures on the Dow Jones Industrial Average rose 30 points, pointing to a 45-point gain at Thursday’s open. S&P 500 futures and the Nasdaq 100 futures rose 0.16% and 0.1%, respectively.

The S&P 500 (SPY) slipped -0.34% today. Sector decliners led advancers 6 to 5 as shown below in the sector graph. Losses ranged from -1.24% to less than 1%. Gains ranged from +1.27% to less than 1%, check the sector graph for specifics.

The Dow Jones index dropped -135 points (-0.50%) to close at 26,734. The Nasdaq slumped -76 points (-0.73%) to settle at 10,473.

Tech Business Models Can Withstand Coronavirus

Stocks ended in the red Thursday as investors sifted through earnings and a jobless claims number that came out worse than expected.

Shares of Microsoft and Apple fell more than 1% each. Amazon dipped 0.3%. Netflix — which was set to report earnings after the bell — erased earlier losses and gained 0.8%. The streaming giant’s stock dropped more than 11% after hours on the back of its results.

Big Tech has been the best-performing group in the stock market this year as investors bet their business models could withstand the coronavirus economic slowdown. However, they have struggled this week. Netflix is down more than 3% week to date; Facebook, Amazon, Alphabet and Microsoft are also down over that time period.

“Over the next few weeks the core tech titans are set to report earnings,” said Dan Ives, an analyst at Wedbush. “This will be a pivotal few weeks for investors to gauge how the tech stalwarts business models/trends are holding up in this unprecedented COVID-19 storm and will be a key barometer for overall consumer and enterprise spending trends during this semi-lockdown backdrop.”

Jobless Claims Worse Than Expected

The weekly jobless claims number came in slightly worse than expected. The Labor Department said a total of 1.3 million Americans filed for unemployment benefits last week, compared to Dow Jones estimates of 1.25 million first-time filers.

Key Takeaways…

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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7/16/20

S&P 500 Sector Graph

Tech Business Models Can Withstand Coronavirus

S&P 500 (SPY)

Tech Business Models Can Withstand Coronavirus

Communication Services (XLC)

Tech Business Models Can Withstand Coronavirus

Consumer Discretionary (XLY)

Tech Business Models Can Withstand Coronavirus

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Consumer Staples (XLP)

Tech Business Models Can Withstand Coronavirus

Energy (XLE)

Tech Business Models Can Withstand Coronavirus

Financials (XLF)

Tech Business Models Can Withstand Coronavirus

Real Estate (XLRE)

Tech Business Models Can Withstand Coronavirus

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Tech Business Models Can Withstand Coronavirus

Utilities (XLU)

S&P 500 Sector Heat Map

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