Tech Gains Outweigh Buffett Stock Dump

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as tech gains outweigh Buffett stock dump. 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 fall more than 200 points amid concerns over reopening the economy

Stock futures fell on Sunday night as traders weighed the reopening of the economy along with brewing tensions between China and the U.S. Dow Jones Industrial Average futures were down by 245 points, or 1%. S&P 500 and Nasdaq 100 futures also traded about 1% lower. States across the U.S.

The S&P 500 (SPY) rose +0.43% today. Sector advancers led decliners 6 to 5 as shown below in the sector graph. Gains ranged from +3.46% to less than 1%. Losses ranged from -1.27% to less than 1%, check the the sector graph for specifics.

The Dow Jones index added +26 points (+0.11%) to close at 23,749. The Nasdaq climbed +105 points (+1.23%) to close at 8,710.

Tech Gains Outweigh Buffett Stock Dump

Stocks found slight gains Monday as tech gains outweighed Warren Buffett’s stock dump.

The continued strength in tech outweighed losses in airline shares, following Warren Buffett’s comments over the weekend that his Berkshire Hathaway dumped the entirety of its stakes in the sector because of the coronavirus outbreak.

Berkshire had more than $4 billion invested across United, American, Southwest, and Delta Airlines before the sale. Buffett noted his admiration for the industry but added there are events “on the lower levels of probabilities” that call for a change of plans.

Monday’s drop pushed American, United and Delta’s 2020 losses to more than 60%, while Southwest has lost nearly half of its value this year.

While Buffett was optimistic over the long term about the outlook for America, the move shows his concern that the pandemic has changed certain industries permanently and could be a sign that other investors are too optimistic about the economy returning to normal quickly.

More states are looking toward reopening nonessential businesses and easing stay-at-home orders as the new coronavirus cases slowed down over the weeks. California governor Gavin Newsom said Monday some businesses can reopen “as early as the end of this week.”

However, this easing comes as data from the World Health Organization showed the U.S. had its deadliest 24 hours of the outbreak between Thursday and Friday.

Meanwhile, tensions between China and the U.S. started brewing again over the origin of the virus. On Sunday, Secretary of State Mike Pompeo said there was a “significant amount of evidence” connecting the coronavirus to a lab in the Wuhan region of China.

Those comments came after National Economic Council Director Larry Kudlow said Friday that China will be “held accountable” for the coronavirus. Earlier in the week, President Donald Trump said he was considering imposing tariffs on China for its handling of the outbreak.

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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5/4/20

S&P 500 Sector Graph

Tech Gains Outweigh Buffett Stock Dump

S&P 500 (SPY)

Tech Gains Outweigh Buffett Stock Dump

Communication Services (XLC)

Tech Gains Outweigh Buffett Stock Dump

Consumer Discretionary (XLY)

Tech Gains Outweigh Buffett Stock Dump

Consumer Staples (XLP)

Tech Gains Outweigh Buffett Stock Dump

Energy (XLE)

Tech Gains Outweigh Buffett Stock Dump

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Financials (XLF)

Tech Gains Outweigh Buffett Stock Dump

Real Estate (XLRE)

Tech Gains Outweigh Buffett Stock Dump

Healthcare (XLV)

Industrials (XLI)

Tech Gains Outweigh Buffett Stock Dump

Materials (XLB)

Technology (XLK)

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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