Worldwide Central Bank Action Lift Stocks

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after worldwide central bank action lift stocks. 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 open 200 points lower as Wall Street’s equity rout continues

Futures contracts tied to the major U.S. stock indexes pointed to another lower open at the beginning of extended trading Wednesday evening. Dow Jones Industrial Average futures dropped 200 points shortly after the opening of extended trading, implying an opening fall of 107 points. S&P 500 and Nasdaq futures also pointed to modestly lower drops.

The S&P 500 (SPY) rose +0.47% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Energy (XLE) led advancers with a +6.80% gain. Consumer discretionary (XLY) had a +3.49% gain. Financials (XLF) and materials (XLB) each had 2% gains. Communication services (XLC) had a 1% gain. Industrials (XLI) and technology (XLK) each had small gains of less than 1%. Utilities (XLU) led decliners down with a -5.82% loss. Consumer staples (XLP) had a -3.34% loss. Healthcare (XLV) had a -2.05% loss. Real estate (XLRE) had a -1.57% loss.

The Dow Jones index added +188 points (+0.95%) to close at 20,087. The Nasdaq climbed +160 points (2.30%) to settle at 7,150.

Worldwide Central Bank Action Lift Stocks

Stocks regained some its losses lately on Thursday as central bank action across the world spur stocks higher.

On Wednesday evening, the European Central Bank announced a new Pandemic Emergency Purchase Program that will deploy €750 billion ($819 billion) to purchase securities to help support the European economy. The central bank said purchases will be conducted until the end of 2020 and include a variety of assets including government debt.

The ECB’s action follows similar initiatives by the Federal Reserve. The Fed announced earlier this month plans to pump an additional $1 trillion into the U.S. economy through asset purchases and cut the federal funds rate to zero. The Fed also said Wednesday night it will create a backstop for prime money market funds.

On the fiscal side, President Donald Trump signed Wednesday a bill that that expands paid leave for workers during the coronavirus crisis. That bill was signed as the administration and lawmakers iron out a stimulus package potentially worth $1 trillion.

Coronavirus cases around the world top 236,000, according to Johns Hopkins University. In the U.S. alone, more than 9,790 cases have been confirmed along with over 150 deaths.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 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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3/19/20

S&P 500 Sector Graph

Worldwide Central Bank Action Lift Stocks

S&P 500 (SPY)

Worldwide Central Bank Action Lift Stocks

Communication Services (XLC)

Worldwide Central Bank Action Lift Stocks

Consumer Discretionary (XLY)

Worldwide Central Bank Action Lift Stocks

Consumer Staples (XLP)

Worldwide Central Bank Action Lift Stocks

Energy (XLE)

Worldwide Central Bank Action Lift Stocks

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)

Worldwide Central Bank Action Lift Stocks

Real Estate (XLRE)

Worldwide Central Bank Action Lift Stocks

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

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.

Utilities (XLU)

S&P 500 Sector Heat Map

 

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