Washington Gridlock Deflates Stock Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Washington gridlock deflates stock rally. 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 closes 97 points lower as concern over government shutdown looms

Brendan McDermid | Reuters Stocks are off to a strong start this year. The Dow, S&P 500 and Nasdaq composite are all up at least 4.8 percent for 2018, adding to last year’s strong gains. Equities have been boosted this year by optimism in the U.S. economy and expectations for a strong earnings season.

The S&P 500 (SPY) slipped 0.16% today as Washington gridlock deflates stock rally. S&P sector decliners led advancers by 8 to 2. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), financials (XLF), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) dropped less than 1%. Healthcare (XLV) and technology (XLK) were positive by less than 1%.

The Dow Jones index took pause from the recent rally, giving back 97 points ending at 26,017. The Nasdaq was flat on the session, dropping 2 points finishing at 7,296.

Investors were cautious and took profits from the recent rally as a possible government shutdown looms. Congress needs to come up with a spending bill by Friday to avoid a government shutdown. The 10 year treasury bond neared a multi year high of 2.62% as interest rate sensitive sectors like utilities and real estate have been hit hard recently by rising rates.

Facebook (FB) helped the tech sector turn positive with a 1.24% gain on the day. Netflix (NFLX) bucked the consumer discretionary downtrend today by adding 1.30%. UnitedHealth (UNH) continued its recent uptrend by advancing another 1.98% today. Boeing (BA) finally came back down to earth, retreating 3% from its high. As mentioned above, utilities (XLU) slid with 10 out of its top 10 holdings were in the red and real estate (XLRE) had 7 out of its top 10 holdings fall more than 1%.

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.

1/18/18

S&P 500 Sector Graph

Washington Gridlock Deflates Stock Rally

S&P 500 (SPY)

Washington Gridlock Deflates Stock Rally

Consumer Discretionary (XLY)

Washington Gridlock Deflates Stock Rally

Consumer Staples (XLP)

Washington Gridlock Deflates Stock Rally

Energy (XLE)

Washington Gridlock Deflates Stock Rally

Financials (XLF)

Washington Gridlock Deflates Stock Rally

Real Estate (XLRE)

Washington Gridlock Deflates Stock Rally

Healthcare (XLV)

Washington Gridlock Deflates Stock Rally

Industrials (XLI)

Washington Gridlock Deflates Stock Rally

Materials (XLB)

Washington Gridlock Deflates Stock Rally

Technology (XLK)

Washington Gridlock Deflates Stock Rally

Utilities (XLU)

Washington Gridlock Deflates Stock Rally

S&P 500 Sector Heat Map

Washington Gridlock Deflates Stock Rally

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