The market was mixed but overall moved up this week. There were several sectors that are still problemmatic but several sectors continued to move forward this week. Much of the positive movement was due to the potential of some medications showing promise against the coronavirus. In coming weeks we will likely be looking for what the economy and markets will look like on the other side of this pandemic and what longer term damage has been made. Earnings started this week, with most companies having 2 to 3 weeks of quaranteen included in the numbers for Q1, many eyes are already looking towards Q2 results to try to forsee the damage.

All 3 major indexes were up for the week ended 2020-04-17. The Dow Jones Industrial average ended the week at 24,242 an increase of 2.2%. The broader S&P 500 index ended the week at 2,875 an increase of 3.0%. The Nasdaq 100 ended the week at 8,832 an increase of 7.2%. The average change for the major averages was up 4.15%.

The Nasdaq Composite is almost back to levels that opened up the year. The Nasdaq is only down 1.6% year-to-date, which after the performance of the market over the last month to month and a half is extraordinary. The S&P 500 is down 11% on the year and the Boeing influenced Dow Jones Industrial is down 15.1% on the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 1.2%, with the iShares Dividend price declining from $81.16 to $80.20.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 2.0% for the week while mid-cap stocks decreased by 0.6% and small-cap stocks decreased by 3.0%.

In order for us to monitor the performance difference between growth and value stocks, we look at the different capitalization levels (large, mid and small cap). In the latest week, the growth stocks of all 3 capitalization groups outperformed the value stocks. Large-cap growth stocks outperformed large-cap value stocks 6.0% as compared to 1.0%. Mid-cap growth stocks outperformed mid-cap value stocks 4.9% as compared to -2.8%. Finally, Small-cap growth stocks outperformed small-cap value stocks 2.5% as compared to -4.3%.

Sector View

As we've been doing since the coronavirus inflicted the whole market moving in the same direction, we will just highlight the weekly performance of each sector:

Sector performance was as follows:

  • Communication Services: +3.95%
  • Consumer Discretionary: +7.68%
  • Consumer Staples: +3.86%
  • Energy: +0.57%
  • Financials: -4.72%
  • Health: +6.35%
  • Industrials: -0.58%
  • Technology: +4.62%
  • Materials: -2.41%
  • Real Estate: -3.79%
  • Utilities: -0.86%


  • Earnings Roundup

    Earnings season started with a few of the major financial companies reporting

    • Johnson & Johnson. (JNJ) announced earnings after the market close on 2020-04-14. Earnings came in at $2.30 the analyst consensus was $2.03, a difference of $0.27 per share. Shares closed the prior day at $139.77 a share and closed the day at $146.03 an increase of 4.5%.
    • JP Morgan Chase. (JPM) announced earnings after the market close on 2020-04-14. Earnings came in at $0.78 the analyst consensus was $1.70, a difference of $-0.92 per share. Shares closed the prior day at $98.19 a share and closed the day at $95.50 a decline of -2.7%.
    • Procter & Gamble. (PG) announced earnings after the market close on 2020-04-17. Earnings came in at $1.17 the analyst consensus was $1.12, a difference of $0.05 per share. Shares closed the prior day at $121.50 a share and closed the day at $124.69 an increase of 2.6%.
    • UnitedHealth Group. (UNH) announced earnings after the market close on 2020-04-15. Earnings came in at $3.72 the analyst consensus was $3.64, a difference of $0.08 per share. Shares closed the prior day at $270.50 a share and closed the day at $281.68 an increase of 4.1%.


    Dividend Payments

    Dividend payments were a little light this week, some of the bigger names:

    • Abbott Laboratories (ABT) paid a dividend of $0.36 on 2020-04-14. The stock closed at $89.14 giving an estimated yield of 1.6%.
    • Allergan Plc (AGN) paid a dividend of $0.74 on 2020-04-15. The stock closed at $185.71 giving an estimated yield of 1.6%.
    • W D 40 Company (WDFC) paid a dividend of $0.67 on 2020-04-16. The stock closed at $169.06 giving an estimated yield of 1.6%.
    • Colgate-Palmolive Company (CL) paid a dividend of $0.44 on 2020-04-17. The stock closed at $73.42 giving an estimated yield of 2.4%.
    • Caterpillar Inc (CAT) paid a dividend of $1.03 on 2020-04-17. The stock closed at $116.3 giving an estimated yield of 3.5%.
    • Footlocker Inc (FL) paid a dividend of $0.40 on 2020-04-16. The stock closed at $21.74 giving an estimated yield of 7.4%.


    The Week Ahead

    Big Economic and other data {or big events} being reported this week are:

    • Monday: the Federal Reserve Bank of Chicago releases its National Activity Index for March.
    • Tuesday: the National Association of Realtors reports existing home sales for March with an expected decline of 5.6% from February.
    • Wednesday: the Federal Housing Finance Agency releases its Home Price Index for February with an expected gain of 0.4% the same as January.
    • Thursday: The Labor Department reports initial jobless claims. The last 4 weeks 22 million people have applied for benefits.
    • Friday: the Census Bureau releases durable good report for March with an expected 11% decline after a decline of 0.6% in February.

    The earnings continue this week with the following companies reporting earnings:

    • Monday: Equifax, Halliburton, IBM
    • Tuesday: Netflix, Chipotle Mexican Grill, Philip Morris International
    • Wednesday: AT&T, Baker Hughes, Delta Airlines
    • Thursday: Capital One Financial, Eli Lilly, Intel
    • Friday: American Express, Sanofi, Verizon Communications

    Please note: with all of the closures that have been occuring over the last day or two some of these announcements may or may not be delayed or postponed. We have no insight into this.


    Authors Note: Please note, the writer currently owns no individual stocks.

    About the Writer

    This page was created and is maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt is an executive, data scientist and software engineer who holds an MBA in Management Information Systems. In 2010, he partnered with scientists at Northwestern University to launch The Street Wire. This was one of the first mainstream uses of what would become “Narrative Science”, an artificial intelligence platform specializing in natural language generation. You can contact Kurt on LinkedIn here.