Volatility Plus Interest Rates Dictate Market Movements
Here is a weekly recap of the S&P 500 broken down by sector (YTD %, holding weighting in sector ETF and % of portfolio in top 10 holdings) followed by sector heat map after volatility plus interest rates dictate market movements. 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 week in review provided by CNBC:
President Trump holds listening session for students involved in deadly Florida shooting, Lindsey Vonn discusses her final Olympic competition and North Korea cancels meeting with Vice President Pence.
Also, here’s a quick look at the week ahead including FOMC Chair Jerome Powell’s testimony in front of Congress and the earnings on tap:
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The S&P 500 (SPY) rose 0.62% on the week as volatility plus interest rates dictate market movements. Sector advancers led decliners 9 to 1 on the week. Advancers were led by technology (XLK) and utilities (XLU) with gains of 1.50% and 1.35% respectively for the week. Consumer discretionary (XLY), energy (XLE), financials (XLF), real estate (XLRE), healthcare (XLV), industrials (XLI) and materials (XLB) all had gains of less than 1% on the week. Consumer Staples (XLP) was the only sector that was negative for the week with a 1.86% loss (the above numbers provided by Charles Schwab).
The Dow Jones index was basically flat for the week only rising 0.16%. The Nasdaq did slightly better gaining 1.49% on the week.
The week didn’t start off very good, stocks were pressured to the downside by Walmart’s earnings miss on Tuesday (sending the stock down 10%). Consumer staples (XLP) lost 2% on the day. The 10 year bond yield reached a 4 year high after the Fed meeting minutes were released showing some economic growth and increased inflation. Both the Dow and S&P experienced wide trading ranges this week as volatility continued. St. Louis Fed President James Bullard gave an interview to CNBC regarding interest rates. The Fed came out with a report on Friday stating the labor market was close to full employment but saw no pressure from wage gains which can cause inflation.
The SPY’s top 10 holdings and how they did this week (according to Charles Schwab)…
- AAPL +1.45%
- MSFT +1.51%
- AMZN +2.62%
- FB +1.85%
- JPM +1.56%
- BRK.B +1%
- JNJ +0.60%
- XOM +1.73%
- GOOGL +3.37%
- GOOG +3.42%
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.
S&P 500 Sector Graph (Weekly numbers skewed because of the holiday this past Monday and might include last Friday’s results)
S&P 500 (SPY)
Consumer Discretionary (XLY)
Consumer Staples (XLP)
Real Estate (XLRE)
S&P 500 Sector Heat Map