Trade Headwind Sensitivity Hits Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as trade headwind sensitivity hits stocks. 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 turn negative on report that China has doubts over a long-term US trade deal

U.S. stock index futures turned lower on Thursday morning.

The S&P 500 (SPY) dropped -0.30% today. Sector decliners led advancers 9 to 2 as shown below in the sector graph. Materials (XLB) and industrials (XLI) led decliners down, each with losses of more than 1%. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), healthcare (XLV), real estate (XLRE) and technology (XLK) each had small losses of less than 1%. Communication services (XLC) and utilities (XLU) each enjoyed minor gains of less than 1%.

The Dow Jones index finished in the red by -140 points (-0.52%) to close at 27,046. The Nasdaq gave back -11 points (-0.14%) to settle at 8,292.

Trade Headwind Sensitivity Hits Stocks

Stocks closed in negative territory Thursday despite better than expected earnings and the Fed’s third rate cute as trade headline sensitivity pressures stocks lower.

Bloomberg News reported Thursday, citing unnamed sources, that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report added Chinese officials are concerned about President Donald Trump’s “impulsive nature” and the risk of him backing out of any kind of deal.

Trump tried to assuage concerns before Thursday’s open, saying in a tweet: “China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal, after APEC in Chile was canceled do to unrelated circumstances. The new location will be announced soon. President Xi and President Trump will do signing!”

So far, two thirds of the S&P 500 have reported quarterly numbers. Of those companies, 75% posted better-than-expected results, FactSet data shows.

Key Takeaways…

I took the following CNBC screenshots today regarding beyond record highs, for the month of October, big cap rally in October, market’s key concerns 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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10/31/19

S&P 500 Sector Graph

Trade Headwind Sensitivity Hits Stocks

S&P 500 (SPY)

Trade Headwind Sensitivity Hits Stocks

Communication Services (XLC)

Trade Headwind Sensitivity Hits Stocks

Consumer Discretionary (XLY)

Trade Headwind Sensitivity Hits Stocks

Consumer Staples (XLP)

Trade Headwind Sensitivity Hits Stocks

Energy (XLE)

Trade Headwind Sensitivity Hits Stocks

Financials (XLF)

Trade Headwind Sensitivity Hits Stocks

Real Estate (XLRE)

Trade Headwind Sensitivity Hits Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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