As with most weeks this year, the financial markets were significantly impacted by coronavirus news. The resurgences in illnesses in states like Texas and Florida have caused several states to pull back on reopening plans. This sent markets tumbling this week with the major indexes and every sector ending the week down as compared to last week. Next week will be highlighted by several jobs reports from both ADP and the Federal Government so it could shape up to be another wild week ahead.

All 3 major indexes were down for the week ended 2020-06-26. The Dow Jones Industrial average ended the week at 25,016 a decline of 3.3%. The broader S&P 500 index ended the week at 3,009 a decline of 2.9%. The Nasdaq 100 ended the week at 9,849 a decline of 1.6%. The average change for the major averages was down 2.59%.

Two of the three major indexes have been negative for much of the year and the tech-heavy Nasdaq had its year-to-date gain pared this week. The Nasdaq is now up 9.8% for the year on the strength of the major technology companies like Google, Microsoft, Amazon and others. The S&P 500 is now down 6.9% for the year and the Boeing influenced Dow Jones Industrial Average is now down 12.3% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 5.5%, with the iShares Dividend price declining from $82.28 to $77.77.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 2.0% for the week while mid-cap stocks decreased by 3.7% and small-cap stocks decreased by 3.4%.

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 -2.7% as compared to -4.4%. Mid-cap growth stocks outperformed mid-cap value stocks -1.5% as compared to -5.0%. Finally, Small-cap growth stocks outperformed small-cap value stocks -2.0% as compared to -6.1%.

Sector View

As stated above, there were no sector was up for the week, but there was one sector that only lost 0.36% for the week, the Information Technology sector wasn't terrible.

A month or so ago when absolutely every sector moved in the same direction, we just listed out the gains or losses for the week. This weeks' losses were:

  • Energy: -7.01%
  • Financials: -5.33%
  • Communication Services: -5.29%
  • Real Estate: -4.02%
  • Industrials: -3.68%
  • Consumer Staples: -3.25%
  • Utilities: -3.23%
  • Materials: -2.88%
  • Health: -2.39%
  • Consumer Discretionary: -2.24%
  • Technology: -0.36%



Earnings Roundup

This was another incredibly light week as the second quarter comes to an end. There was a total of 92 earnings releases for the week. Some of the highlights:

  • Accenture Plc (ACN) announced earnings after the market close on 2020-06-25. Earnings came in at $1.90 the analyst consensus was $1.84, a difference of $0.06 per share. Shares closed the prior day at $201.84 a share and closed the day at $217.32 an increase of 7.7%.
  • Ihs Markit Ltd. (INFO) announced earnings after the market close on 2020-06-23. Earnings came in at $0.69 the analyst consensus was $0.65, a difference of $0.04 per share. Shares closed the prior day at $73.29 a share and closed the day at $72.77 a decline of -0.7%.
  • Mccormick Company. (MKC) announced earnings after the market close on 2020-06-25. Earnings came in at $1.47 the analyst consensus was $1.16, a difference of $0.31 per share. Shares closed the prior day at $172.27 a share and closed the day at $178.54 an increase of 3.6%.
  • Nike, Inc. (NKE) announced earnings after the market close on 2020-06-25. Earnings came in at $-0.51 the analyst consensus was $0.02, a difference of $-0.53 per share. Shares closed the prior day at $101.40 a share and closed the day at $93.67 a decline of -7.6%.


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 the Pending Home Sales Index for May. The expectation is a large rebound of 25% to a reading of 89 after April's decline of 21.8%.
  • Tuesday: The Conference Board releases its Consumer Confidence Index for June with an expected level of 90, up from May's report of 86.6%
  • Wednesday: ADP releases its National Employment report for June with an expectation of a gain of 2.9 million private-sector jobs after Aprils' decline of 2.8 million.
  • Thursday: The Bureau of Labor Statistics releases the jobs report for June with an expected 3 million non-farm jobs added and unemployment to drop from 13.3% to 12.2% after May's gain of 2.5 million jobs.
  • Thursday: The Department of Labor reports on initial jobless claioms for this past week. 14 consecutive weeks of over a million lost jobs have taken a toll on both the economy and the markets.
  • Friday: US Equity and fixed-income markets are closed for the long 4th of July Weekend.

Earnings season will begin to kick in with reports from:

  • Monday: Micron Technologies
  • Tuesday: FedEx, Conagra Brands
  • Wednesday: General Mills, Constellation Brands
  • Thursday:
  • 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.