Tech Valuations Seen As An ATM
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as tech valuations seen as an ATM. 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:
U.S. stock futures were flat on Wednesday night as traders digested the Federal Reserve’s pledge to keep rates low over the next few years. Dow Jones Industrial Average traded 6 points lower, or 0.02%. S&P 500 and Nasdaq 100 futures were also marginally lower. Members of the Federal Open Market Committee indicated the U.S.
The S&P 500 (SPY) dropped -0.84% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Losses ranged from -2.21% to less than 1%. Energy (XLE), industrials (XLI) and materials (XLB) enjoyed minor gains of less than 1%.
The Dow Jones index suffered a lost of -130 points (-0.47%) to close at 27,901. The Nasdaq declined -140 points (-1.27%) to settle at 10,910.
Tech Valuations Seen As An ATM
Stocks ended in the red Thursday as investors were reluctant to hit that buy button.
Facebook and Amazon were down 3.3% and 2.3%, respectively. Netflix closed 2.8% lower. Alphabet dropped 1.7% while Apple and Microsoft were both down at least 1%. Snowflake, an IPO which captivated Wall Street on Wednesday as it doubled in its debut, was off by 10.4%.
“The market had gone up too much, too fast and valuations got to a point where that was more noticeable than before,” said Tom Martin, senior portfolio manager at GLOBALT. “So now you’re seeing the market correct a bit.”
Traders were also monitoring the status of stimulus talks after Trump suggested Wednesday he could support a larger package. However, multiple reports indicated that Senate Republicans appeared reluctant to do so without more details on a bill.
Wall Street evaluated for a second day the Federal Reserve’s interest rate outlook where it indicated rates could stay low through 2023 as the central bank tries to spur inflation. Fed Chairman Jerome Powell said in a news conference easy monetary policy will remain “until these outcomes, including maximum employment, are achieved.”
The latest U.S. weekly jobless claims came in slightly better than expected. First-time claims for unemployment insurance totaled 860,000 in the week ending Sept.12, versus an estimate of 875,000, according to economists polled by Dow Jones.
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.
Download our new Handy ETF Guide
Subscribe to get our free weekly newsletter by email.
S&P 500 Sector Graph
S&P 500 (SPY)
Communication Services (XLC)
Consumer Discretionary (XLY)
Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).
Consumer Staples (XLP)
Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.
Real Estate (XLRE)
Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.
S&P 500 Sector Heat Map