Another week and another coronavirus inspired market movement. There has really been little in the last almost 4 months that has moved the markets other than this pandemic and it's likely to continue for the forseeable future. The story for this week is that "the market" thinks that it got ahead of itself, which set off a massive selloff, particularly on Thursday this week.

All 3 major indexes were down for the week ended 2020-06-12. The Dow Jones Industrial average ended the week at 25,606 a decline of 5.6%. The broader S&P 500 index ended the week at 3,041 a decline of 4.8%. The Nasdaq 100 ended the week at 9,664 a decline of 1.6%. The average change for the major averages was down 3.99%.

The tech-heavy Nasdaq composite index remains up for the year (+7.7%), but the broader S&P 500 is down 5.9% and the Dow Jones Industrial is down 4.6% on the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 7.2%, with the iShares Dividend price declining from $89.32 to $82.85.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 5.2% for the week while mid-cap stocks decreased by 6.7% and small-cap stocks decreased by 9.0%

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, 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 -3.3% vs. -6.6%. Mid-cap growth stocks outperformed Mid-cap value stocks this week -4.3% vs. -8.0%. Small-cap growth stocks outperformed Small-cap value stocks this week -5.3% vs. -9.4%.

Sector View

No sector was up this week with a massive decline in the Energy, Financials, Industrials and Materials sectors. These sectors declined by 10.97%, 9.05%, 8.35% and 8.17% respectively.

The so-called winner this week was the Technology sector which only declined by 2.26%. The two consumer sectors; Consumer Discretionary and Consumer Staples were down 3.37% and 4.03% respectively. Overall it was a very bad week.



Earnings Roundup

The bulk of the earnings season is behind us for the first quarter, but there were still some large companies reporting this week:

  • Adobe Systems Inc. (ADBE) announced earnings after the market close on 2020-06-11. Earnings came in at $2.45 the analyst consensus was $2.35, a difference of $0.10 per share. Shares closed the prior day at $387.67 a share and closed the day at $406.54 an increase of 4.9%.
  • Brownforman Corporation. (BF.B) announced earnings after the market close on 2020-06-09. Earnings came in at $0.27 the analyst consensus was $0.28, a difference of $-0.01 per share. Shares closed the prior day at $67.91 a share and closed the day at $69.14 an increase of 1.8%.
  • Coupa Software, Inc. (COUP) announced earnings after the market close on 2020-06-08. Earnings came in at $0.20 the analyst consensus was $0.07, a difference of $0.13 per share. Shares closed the prior day at $220.78 a share and closed the day at $224.59 an increase of 1.7%.
  • Lululemon Athletica. (LULU) announced earnings after the market close on 2020-06-11. Earnings came in at $0.22 the analyst consensus was $0.26, a difference of $-0.04 per share. Shares closed the prior day at $308.12 a share and closed the day at $296.36 a decline of -3.8%.


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: The Federal Reserve Bank of NY will release its Empire State Manufacturing Survey for June, where economists see a -27.5 reading which is an improvement over May's -48.5.
  • Tuesday: The Census Bureau reports May retail sales with an expected incrase of 6.3% in May after a 16.4% decline in April.
  • Wednesday: OPEC along with other oil producing countries (Russia) begin meetings to review conditions in the oil market.
  • Thursday: The Conference Board releases its Leading Economic Index for May, with an expected 1.3% rise compared to April's decline of 4.4%
  • Friday:

Earnings season for last quarter is really coming to end, but a few companies are left to report:

  • Monday:
  • Tuesday: Groupon, Lennar, Oracle
  • Wednesday:
  • Thursday: Kroger, Smith & Wesson Brands
  • Friday: Lyft, Slack - host shareholder meetings.

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.