The markets were somewhat mexed this week with all of the major averages recording declines but the sectors were mixed with a few increawsing. Earnings season was in full force this week, but in all honesty, the 1st quarter results mean a lot less than the 2nd quarter where the full impact of the quarantine and the consumer will be felt. The news of the week was highlighted with another big initial unemployment claim report at 3.89 million new claims bringing the total in the last 6 weeks to over 30 million.

All 3 major indexes were down for the week ended 2020-05-01. The Dow Jones Industrial average ended the week at 23,724 a decline of 0.2%. The broader S&P 500 index ended the week at 2,831 a decline of 0.2%. The Nasdaq 100 ended the week at 8,718 a decline of 0.8%. The average change for the major averages was down 0.40%.

All three major indexes are similar to where they were 2 weeks ago, all in negative territory but to different degrees. The Dow Jones Industrial is down the most at -16.9% for the year, followed by the S&P 500 down 12.4% and the tech-heavy Nasdaq is the YTD leader at -2.8%.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 0.1%, with the iShares Dividend price climbing from $77.84 to $77.92.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 3.2% for the week while large-cap stocks decreased by 0.4% and mid-cap stocks increased by 0.9%.

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, there was a mixture in performance between growth and value stocks based on the capitalization of the underlying companies. Large-cap growth stocks outperformed large-cap value stocks this week -0.0% vs. -0.6%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 1.7% vs. 0.0%. Small-cap value stocks outperformed Small-cap growth stocks this week 4.6% vs. 0.0%.

Sector View

This past week were a little mixed with seven sectors posting gains and 4 losting losses for the week. The spread between the biggest winner and the biggest loser was quite wide with the Utilities losing 3.83% and the Energy sector gaining 3.31%.

In addition to the Energy sector, the other big gainers this week were the Materials, Financials and Communication Services Sectors which gained 2.6%, 2.42% and 2% respectively.

With the Utilities sector dropping as much as it did, the Healthcare Sector also lost 2.7% and the Consumer Staples Sector declined 1.67%



Earnings Roundup

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

  • Amazon.com, Incorporated. (AMZN) announced earnings after the market close on 2020-04-30. Earnings came in at $5.01 the analyst consensus was $6.36, a difference of $-1.35 per share. Shares closed the prior day at $2,474.00 a share and closed the day at $2,286.04 a decline of -7.6%.
  • Facebook, Inc. (FB) announced earnings after the market close on 2020-04-29. Earnings came in at $1.71 the analyst consensus was $1.73, a difference of $-0.02 per share. Shares closed the prior day at $194.19 a share and closed the day at $204.71 an increase of 5.4%.
  • Alphabet Inc. (GOOG) announced earnings after the market close on 2020-04-28. Earnings came in at $9.87 the analyst consensus was $10.40, a difference of $-0.53 per share. Shares closed the prior day at $1,233.67 a share and closed the day at $1,341.48 an increase of 8.7%.
  • Microsoft Corporation. (MSFT) announced earnings after the market close on 2020-04-29. Earnings came in at $1.40 the analyst consensus was $1.27, a difference of $0.13 per share. Shares closed the prior day at $177.43 a share and closed the day at $179.21 an increase of 1.0%.


Dividend Payments

We are still catching up on our data production and are suspending this section for the week.



The Week Ahead

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

  • Monday:
  • Tuesday: the Institute for Supply Management releases its non-Manufacturing Purchasing Managers Index for April with a consensus estimated reading of 36, well below March's 52.5.
  • Wednesday: ADP releases its National Employment report for April with a forecast of 20 million nonfarm private sector jobs lost.
  • Thursday: The Department of Labor reports initial jobless claims for the week of May 2 with an estimated 30 million Americans filing in the last 6 weeks (a total of 18% of the workforce).
  • Friday:

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

  • Monday: Sempra Energy, Tyson Foods, Vornado Realty Trust
  • Tuesday: Activision Blizzard, Walk Disney, Devon Energy, DuPont
  • Wednesday: BorgWarner, CVS Health, General Motors, T-Mobile US
  • Thursday: Bristol-Myers Squibb, Consolidated Edison, Raytheon Technology
  • Friday: Carrier Global, EOG Resources, Noble Energy

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.