Overall, this was a volatile but bad week for the markets with all but one sector losing ground on the week. Over the last 2 weeks there have been nearly 2,000 earnings releases so we can begin to get a sense of the devastation that the shutdown has had on the economy. The big economic news last week was lead by the retail sales data that came out late last week which illustrates some of the hardest hit industries. The chart below (shared from CNBC) shows the devastation to some retail sectors.

All 3 major indexes were down for the week ended 2020-05-15. The Dow Jones Industrial average ended the week at 23,685 a decline of 2.7%. The broader S&P 500 index ended the week at 2,864 a decline of 2.3%. The Nasdaq 100 ended the week at 9,153 a decline of 0.7%. The average change for the major averages was down 1.88%.

The three major market indexes are quite different right now with the tech-heavy Nasdaq Composite index up 2.0% for the year and the other 2 indexes both down double-digits. THe S&P500 is down 11.4% and the Dow Jones Industrial is down 17.0% year-to-date.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 5.4%, with the iShares Dividend price declining from $79.36 to $75.07.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 2.3% for the week while mid-cap stocks decreased by 5.0% and small-cap stocks decreased by 7.0%.

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 -1.0% as compared to -3.3%. Mid-cap growth stocks outperformed mid-cap value stocks -1.1% as compared to -6.7%. Finally, Small-cap growth stocks outperformed small-cap value stocks -2.5% as compared to -8.8%.

Sector View

Significant market volatility is likely going to be with us for a while and this past week was no different with one sector eeking out a gain on the week, 4 sectors down 'a little bit' this week and the other 6 sectors down quite a bit.

The Healthcare sector was the only one that ended last week up, rising by just under 1% at +0.98%

Last week there were 4 sectors that were down about 1.5% all consumer and technology related, but there were four sectors that lost over 5% on the week. The big drops came from Real Estate, down 8.34%, Energy, down 6.94%, Financial, down 6.4% and Industrials down 5.84%.



Earnings Roundup

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

  • Cisco Systems, Corporation. (CSCO) announced earnings after the market close on 2020-05-13. Earnings came in at $0.79 the analyst consensus was $0.72, a difference of $0.07 per share. Shares closed the prior day at $41.95 a share and closed the day at $43.85 an increase of 4.5%.
  • Duke Energy Corporation. (DUK) announced earnings after the market close on 2020-05-12. Earnings came in at $1.14 the analyst consensus was $1.21, a difference of $-0.07 per share. Shares closed the prior day at $81.66 a share and closed the day at $81.88 an increase of 0.3%.
  • Honda Motor Company. (HMC) announced earnings after the market close on 2020-05-12. Earnings came in at $-0.16 the analyst consensus was $0.28, a difference of $-0.44 per share. Shares closed the prior day at $23.98 a share and closed the day at $22.71 a decline of -5.3%.
  • Alcon Inc (ALC) announced earnings after the market close on 2020-05-12. Earnings came in at $0.45 the analyst consensus was $0.39, a difference of $0.06 per share. Shares closed the prior day at $53.20 a share and closed the day at $56.51 an increase of 6.2%.
  • Petroleo Brasil. (PBR) announced earnings after the market close on 2020-05-14. Earnings came in at $0.06 the analyst consensus was $0.07, a difference of $-0.01 per share. Shares closed the prior day at $6.04 a share and closed the day at $6.10 an increase of 1.0%.
  • V.f. Corporation. (VFC) announced earnings after the market close on 2020-05-15. Earnings came in at $0.10 the analyst consensus was $-0.03, a difference of $0.13 per share. Shares closed the prior day at $55.44 a share and closed the day at $51.96 a decline of -6.3%.


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: National Association of Home Builders releases their Housing Market Index for May with a consensus estimate above April.
  • Tuesday: The Census Bureau reports new residential construction data for April with a forecast of 919K housing starts a 1/4 decline from March's 1.2 million estimate.
  • Wednesday: The FOMC releases minutes from its monetary policy meeting from April
  • Thursday: The Conference Board releases its Leading Economic Index for April, with expectations for a 5.7% decline after April's 6.7% decline.
  • Friday:

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

  • Monday: Baidu
  • Tuesday: Amgen, Chipotle Mexican Grill, JPMorgan Chase
  • Wednesday: Expedia Group, Lowe's, McKesson, Target
  • Thursday: Agilent, Best Buy, Hormel Foods, Intuit
  • Friday:

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.