Vaccine Deal Boost Investor Sentiment
Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as vaccine deal boost investor sentiment. 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:
U.S. stock futures were flat in overnight trading ahead of major technology earnings from Microsoft and Tesla on Wednesday. Dow futures fell 6 points. The S&P 500 and Nasdaq-100 futures fell 0.05% and 0.02%, respectively. A few disappointing company earnings after the bell Tuesday weighed on investor sentiment.
The S&P 500 (SPY) rose +0.57% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Gains ranged from +1.54% to less than 1%. Energy (XLE) lost -1.23%.
The Dow Jones index added +165 points (+0.62%) to close at 27,005. The Nasdaq advanced +25 points (+0.24%) to settle at 10,706.
Vaccine Deal Boost Investor Sentiment
Stocks ended in positive territory Wednesday as investors cheered a coronavirus vaccine deal along with progress on another stimulus package from the US government.
The U.S. agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccines if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement.
Stocks got a boost in the final hour after sources told CNBC that Republicans are considering extending current unemployment benefits at $400 per month through December. That would be lower than the current unemployment benefits of $600 per week.
Tensions between the US and China rose again after the U.S. State Department abruptly ordered China to close its consulate in Houston. Foreign ministry spokesperson Wang Wenbin condemned the action and warned of firm countermeasures if the U.S. does not reverse its decision. The closure comes as relations between the two largest world economies have deteriorated during the coronavirus pandemic.
Microsoft and Tesla Earnings
Microsoft shares fell 2% on Wednesday after the company reported XXX fiscal fourth-quarter earnings that exceeded analysts’ expectations. Here’s how the company did: Earnings: $1.46 per share, adjusted, vs. $1.34 per share as expected by analysts, according to Refinitiv. Revenue: $38.03 billion, vs. $36.50 billion as expected by analysts, according to Refinitiv.
Tesla plans to report second-quarter results Wednesday after the bell, and all eyes are on the bottom line at Elon Musk’s electric car and renewable energy business. If Tesla achieves positive net income for the period ending June 30, 2020, it would mark the company’s first full year of reported GAAP profitability.
Notable S&P 500 Movers…
Below I’ve highlighted some notable S&P 500 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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S&P 500 Sector Graph
S&P 500 (SPY)
Communication Services (XLC)
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).
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
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.
S&P 500 Sector Heat Map