Too Many Uncertainties Remain For Investors

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as too many uncertainties remain for investors. 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 drops more than 900 points on Friday, but still finishes higher for the week

Stocks fell sharply on Friday, giving back some of the strong gains experienced in the previous three days to cap off another volatile week on Wall Street. Sentiment took a hit as investors focused back on the coronavirus outbreak as the U.S. became the country with the most confirmed cases.

The S&P 500 (SPY) dropped -3.37% today. Sector decliners led advancers 9 to 2 as shown below in the sector graph. Losses in the decliners ranged from -6% to less than 1%, check the sector graph for specifics. Real estate (XLRE) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index gave back -915 points (-4.06%) to close at 21,636. The Nasdaq finished in the red by -295 points (-3.79%) to settle at 7,502.

Too Many Uncertainties Remain For Investors

Stocks landed deep in negative territory Friday surrendering some gains from the previous 3 days.

Still, the major averages posted strong gains for the week. The Dow rose 12.8% week to date, its biggest one-week gain since 1938. The S&P 500 gained 10.3% this week for its best weekly performance since March 2009. The Nasdaq also had its biggest weekly gain in 11 years, rising 9.1%.

“We believe medium-term risks are skewed to the downside after this rally,” Maneesh Deshpande, Barclays’ chief U.S. equity strategist, said in a note on Friday. “Two other uncertainties facing investors (the length of the economic quarantine required to contain the virus and the ultimate economic damage) remain unresolved.”

Despite the market’s weekly gains, the major averages were still more than 20% below the record highs set last month. Investors have been dumping riskier assets such as stocks amid uncertainty over the economic blow from the coronavirus.

Global cases of the coronavirus have surged to more than 542,700 with at least 85,996 in the U.S., according to data from Johns Hopkins University. The U.S. has now overtaken China as the country with the most confirmed cases in the world. President Donald Trump held a phone call with Chinese leader Xi Jinping, saying the two countries are “working closely together” to fight the pandemic.

The Senate passed a $2 trillion coronavirus relief bill earlier this week, and the House approved the historically massive package on Friday, sending it to President Trump to be signed.

The outbreak has also led several businesses to close shop, sparking a massive surge in unemployment claims. The Labor Department reported that jobless benefit claims had soared to 3.28 million last week, easily eclipsing the previous record of 695,000.

Key Takeaways….

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers.

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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3/27/20

S&P 500 Sector Graph

Too Many Uncertainties Remain For Investors

S&P 500 (SPY)

Too Many Uncertainties Remain For Investors

Communication Services (XLC)

Too Many Uncertainties Remain For Investors

Consumer Discretionary (XLY)

Too Many Uncertainties Remain For Investors

Consumer Staples (XLP)

Too Many Uncertainties Remain For Investors

Energy (XLE)

Too Many Uncertainties Remain For Investors

Financials (XLF)

Too Many Uncertainties Remain For Investors

Real Estate (XLRE)

Too Many Uncertainties Remain For Investors

Healthcare (XLV)

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

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).

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

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.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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