Trade Optimism Leads Headline Driven Market

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as trade optimism leads headline driven market. 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 point to slightly higher open

President Donald Trump has said tariffs on Chinese imports will increase on October 15 if no progress is made in trade negotiations.

The S&P 500 (SPY) gained +0.91% today. All 11 sectors ended in the green as shown below in the sector graph. Materials (XLB) and technology (XLK) led the market higher, each with gains of more than 1%. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), real estate (XLRE), healthcare (XLV), industrials (XLI) and utilities (XLU) each had minor gains of less than 1%.

The Dow Jones index climbed +181 points (+0.70%) to close at 26,346. The Nasdaq jumped +79 points (+1.02%) to settle at 7,903.

Trade Optimism Leads Headline Driven Market

Stocks rose on Wednesday after trade optimism led stocks higher as this headline driven market reacts to every headline.

Earlier in the day, Bloomberg News reported China is prepared to accept a partial trade deal as long as no more tariffs are imposed by President Donald Trump. The report added that Beijing would offer non-core concessions like purchases of agricultural products in return, but not budge on major sticking points between the two nations.

Separately, the Financial Times reported that officials in China are offering to increase purchases of U.S. agricultural products, in order to reach a partial deal.

The Federal Reserve released the minutes from its September meeting. The minutes showed the trade war remains a concern for Fed officials. However, they also showed central-bank officials think the market may be overly optimistic about the number of rate cuts moving forward. Stocks showed little reaction to the minutes.

Key Takeaways…

I took the following CNBC screenshots today regarding truce or trade deal, market narrative, October laggards, October leaders 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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10/9/19

S&P 500 Sector Graph

Trade Optimism Leads Headline Driven Market

S&P 500 (SPY)

Trade Optimism Leads Headline Driven Market

Communication Services (XLC)

Trade Optimism Leads Headline Driven Market

Consumer Discretionary (XLY)

Trade Optimism Leads Headline Driven Market

Consumer Staples (XLP)

Trade Optimism Leads Headline Driven Market

Energy (XLE)

Trade Optimism Leads Headline Driven Market

Financials (XLF)

Trade Optimism Leads Headline Driven Market

Real Estate (XLRE)

Trade Optimism Leads Headline Driven Market

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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