Unemployment Claims Turn Stocks Negative

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as unemployment claims turn stocks negative. 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 jump 100 points after solid tech earnings, Facebook up 10%

Futures contracts tied to the major U.S. stock indexes rose at the start of the overnight session Wednesday evening as both Facebook and Microsoft rallied after each issued better-than-expected revenue projections in their earnings reports. Dow Jones Industrial Average futures rose 100 points, implying an opening gain of about 140 points.

The S&P 500 (SPY) slipped -0.92% today. All 11 sectors landed in the red. Losses ranged from -2.97% to less than 1%, check the sector graph below for specifics.

The Dow Jones index lost -288 points (-1.17%) to close at 24,345. The Nasdaq gave back -25 points (-0.28%) to settle at 8,889.

Unemployment Claims Turn Stocks Negative

Stocks fell lower Thursday as unemployment claims blew past estimates.

The Labor Department said another 3.84 million Americans filed for unemployment benefits last week, bringing the six-week total to more than 30 million. U.S. consumer spending also dropped 7.5% in March on a year-over-year basis.

The sharp rise in jobless claims and the precipitous drop in consumer spending come as businesses are forced to shut down and consumers stay home amid the coronavirus pandemic.

The S&P 500 posted its third-largest monthly gain since World War II, surging 12.7% in April. It was also its biggest one-month gain since 1987. The Dow had its fourth-largest post-war monthly rally with an 11.1% gain. The Dow also had its best month in 33 years.  The Nasdaq surged 15.5% in April, its biggest monthly gain since June 2000.

April’s rally is a mirror image to the market action in March. Last month, the S&P 500 plunged 12.5% while the Dow lost over 13%. The gains in April marked just the fifth time in history the S&P 500 experienced 10% monthly moves in opposite directions during back-to-back months.

Gilead Sciences said Wednesday a study from the National Institute of Allergy and Infectious Diseases met its primary end point. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said remdesivir shows a “clear-cut” positive effect when treating the virus.

Amazon expects to spend entire $4 billion in Q2 operating profit on coronavirus-related expenses

Amazon reported its first-quarter earnings after the bell on Thursday, revealing the pandemic’s impact on the business that has been a rare bright spot on the stock market. The stock fell more than 4% after missing estimates on earnings while beating revenue expectations.

Key Takeaways…

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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4/30/20

S&P 500 Sector Graph

Unemployment Claims Turn Stocks Negative

S&P 500 (SPY)

Unemployment Claims Turn Stocks Negative

Communication Services (XLC)

Unemployment Claims Turn Stocks Negative

Consumer Discretionary (XLY)

Unemployment Claims Turn Stocks Negative

Consumer Staples (XLP)

Unemployment Claims Turn Stocks Negative

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).

Energy (XLE)

Unemployment Claims Turn Stocks Negative

Financials (XLF)

Unemployment Claims Turn Stocks Negative

Real Estate (XLRE)

Unemployment Claims Turn Stocks Negative

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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.

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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