There was a little bit of a difference in the market this week, the market closed several days this week with moves that were less than 1%, which seems like the norm lately. Wednesdays change was 0.36% (down), followed by Thursday's 0.06% increase. With the market moves lately, there's no telling what this means. Could it be caution before a fall? Could it be rationality returning to the market? Nobody really knows at this point.

All 3 major indexes were up for the week ended 2020-06-19. The Dow Jones Industrial average ended the week at 25,871 an increase of 1.0%. The broader S&P 500 index ended the week at 3,098 an increase of 1.9%. The Nasdaq 100 ended the week at 10,009 an increase of 3.6%. The average change for the major averages was up 2.15%.

The Nasdaq continued to increase for the year, now up 11.5%, while the other 2 indexes haven't gotten back to where the year opened. The S&P 500 is currently down 4.1% for the year and the Dow is now down 9.3% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.7%, with the iShares Dividend price declining from $82.85 to $82.28.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.0% for the week while mid-cap stocks increased by 0.7% and small-cap stocks increased by 0.3%.

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 2.9% as compared to 0.1%. Mid-cap growth stocks outperformed mid-cap value stocks 4.5% as compared to -0.2%. Finally, Small-cap growth stocks outperformed small-cap value stocks 4.8% as compared to -0.6%.

Sector View

Another difference in the performance of the market this week was that every sector did not move in lock-step with each other. There were 3 sectors that declined for the week, 7 that increased and once was flat, the Financial sector did not move this week.

The losers this week were the classic dividend stock sectors. Utilities (-2.77%), Energy (-1.91%) and Real Estate (-1.38%) all declined for the week.

On the growth side, the biggest gainers for the week were; Healthcare (+3.41%), Technology (+2.91%), Consumer Discretionary (+2.41%) and Communication Services (+2.15%)



Earnings Roundup

This was a very light week for earnings releases with barely 80 releases for the week. Some of the larger companies announcing earnings were:

  • Carmax, Inc. (KMX) announced earnings after the market close on 2020-06-19. Earnings came in at $0.23 the analyst consensus was $-0.06, a difference of $0.29 per share. Shares closed the prior day at $97.91 a share and closed the day at $91.87 a decline of -6.2%.
  • The Kroger Co. (KR) announced earnings after the market close on 2020-06-18. Earnings came in at $1.22 the analyst consensus was $1.12, a difference of $0.10 per share. Shares closed the prior day at $32.81 a share and closed the day at $31.81 a decline of -3.0%.
  • Lennar Corporation. (LEN) announced earnings after the market close on 2020-06-15. Earnings came in at $1.65 the analyst consensus was $1.29, a difference of $0.36 per share. Shares closed the prior day at $63.50 a share and closed the day at $63.94 an increase of 0.7%.
  • Oracle Corporation. (ORCL) announced earnings after the market close on 2020-06-16. Earnings came in at $1.20 the analyst consensus was $1.14, a difference of $0.06 per share. Shares closed the prior day at $54.59 a share and closed the day at $51.52 a decline of -5.6%.


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 National Association of Realtors reports existing-home sales for May with a consensus of 4.2 million homes as compared to 4.3 million estimated in April.
  • Tuesday: the Census Bureau reports new residential home sales for May with a consensus estimate of 645K sold, an increase of 3.5% above April
  • Wednesday: the Federal Housing Finance Agency releases it's US Home Price Index for April. Prices increased 5.7% in the first quarter compared to last year with pricing strongest out west.
  • Thursday: the Bureau of Economic Analysis reports it's final estimate of Q1 GDP with a revised estimated contraction of 5%, worse than the initial estimate of -4.8%
  • Friday: the Bureau of Economic Analysis reports personal income and spending for May. The expectation is for a 6% decline in income after an unexpected increase of 10.5% in April which reflected a sharp increase in government handouts through various federal programs. Spending is expected to rise 8.6% after a 13.6% decline in April.

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

  • Monday:
  • Tuesday: IHS MarkIt
  • Wednesday: Winnebago
  • Thursday: Accenture, Darden Restaurants, Nike
  • 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.