US Crude Continues to Pressure Stocks Lower

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as US crude continues to pressure stocks lower. 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:

Stock futures rise slightly as oil prices stabilize

Stock futures bounced slightly in overnight trading on Monday. Futures on the Dow Jones Industrial Average rose 25 points. S&P 500 futures added 0.3%. The gains came as the more actively-traded June oil contract rebounded by 2%. The May contract, which triggered Monday’s stock sell-off with a bizarre move below zero into negative prices, remained negative.

The S&P 500 (SPY) dropped -3.07% today. All 11 sectors fell at least -1% as shown below in the sector graph. Losses ranged from -1% to -4.19%, check sector graph below for specifics.

The Dow Jones index lost -631 points (-2.67%) to close at 23,018. The Nasdaq gave back -297 points (-3.48%) to settle at 8,263.

US Crude Continues to Pressure Stocks Lower

Stocks felt the pressure of falling WTI crude Tuesday as investors adjust to the free falling price of oil.

Traders were focused on the strange happenings with oil futures once again, which raised concern about deep losses for the energy industry hitting the U.S. economy even further. The June contract for West Texas Intermediate cratered 43.4% to $11.57 per barrel on Tuesday.

That sharp decline came a day after the May contract — which expired on Tuesday — went to an actual negative price, meaning traders would pay for someone to take the oil off their hands. The bizarre move had to do with the fact that because of the coronavirus shutdowns, big buyers of oil like refineries don’t need any more oil because their tanks are nearly filled. That May contract clawed back into the black on Tuesday.

Trading on Tuesday stabilized slightly after the Senate struck a deal on a $484 billion relief package for small businesses, hospitals and testing.

Investors continued to monitor the coronavirus pandemic and the country’s plan to reopen the economy. Signs have emerged that New York is past the worst of its outbreak. Georgia on Monday rolled out aggressive plans to reopen the state’s economy, calling for many businesses to reopen their doors as early as Friday.

Key Takeaway…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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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4/21/20

S&P 500 Sector Graph

US Crude Continues to Pressure Stocks Lower

S&P 500 (SPY)

US Crude Continues to Pressure Stocks Lower

Communication Services (XLC)

US Crude Continues to Pressure Stocks Lower

Consumer Discretionary (XLY)

US Crude Continues to Pressure Stocks Lower

Consumer Staples (XLP)

US Crude Continues to Pressure Stocks Lower

Energy (XLE)

US Crude Continues to Pressure Stocks Lower

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).

Financials (XLF)

US Crude Continues to Pressure Stocks Lower

Real Estate (XLRE)

US Crude Continues to Pressure Stocks Lower

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

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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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