Very sorry for the snafu last week, we had some server issues that prevented us from posting, but things are back to normal now. This past week was fairly volatile but ended on a good not with all 3 major indexes rising on Friday after wiping out the weeks' gains the day before.

All 3 major indexes were up for the week ended 2020-07-10. The Dow Jones Industrial average ended the week at 26,075 an increase of 1.0%. The broader S&P 500 index ended the week at 3,185 an increase of 1.8%. The Nasdaq 100 ended the week at 10,836 an increase of 4.8%. The average change for the major averages was up 2.50%.

The major averages for the year are still mixed year to date. The tech-heavy Nasdaq Composite is up 20.8% for the year, the S&P 500 edged closer to break even for the year but is still off 1.4% and the Dow Jones Industrial is down 8.6% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.6%, with the iShares Dividend price declining from $80.44 to $79.94.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.4% for the week while mid-cap stocks increased by 0.0% and small-cap stocks decreased by 0.8%.

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 3.7% as compared to 0.5%. Mid-cap growth stocks outperformed mid-cap value stocks 2.2% as compared to -0.7%. Finally, Small-cap growth stocks outperformed small-cap value stocks 0.7% as compared to -1.2%.

Sector View

In spite of the fairly strong move up this week, the sector picture was very mixed with the leading sector rising 5.6% and the loser for the week declining 4.5% for the week for a 10% spread between these sectors.

The sectors that declined for the week were: Energy (-4.5%), Real Estate (-2.55%), Industrials (-1.25%), Healthcare (-0.5%) and Utilities (-0.32%).

The sectors that climbed this week were: Consumer Discretionary (+5.6%), Communication Services (+4.2%), Information Technology (+2.7%), Consumer Staples (+2.4%), Financials (+1.65%) and Materials came in ahead by 0.7% for the week.



Earnings Roundup

This was the last very light week ahead of the start of this very important earnings season, but a few companies reported earnings this week:

  • Walgreens Boots Alliance. (WBA) announced earnings after the market close on 2020-07-09. Earnings came in at $0.83 the analyst consensus was $1.10, a difference of $-0.27 per share. Shares closed the prior day at $42.29 a share and closed the day at $39.01 a decline of -7.8%.
  • MSC Industrials. (MSM) announced earnings after the market close on 2020-07-08. Earnings came in at $1.40 the analyst consensus was $1.20, a difference of $0.20 per share. Shares closed the prior day at $73.73 a share and closed the day at $68.20 a decline of -7.5%.
  • Shaw Communications. (SJR) announced earnings after the market close on 2020-07-10. Earnings came in at $0.25 the analyst consensus was $0.22, a difference of $0.03 per share. Shares closed the prior day at $16.53 a share and closed the day at $0.00 a decline of -100.0%.
  • Grupo Televisa SAB. (TV) announced earnings after the market close on 2020-07-07. Earnings came in at $0.13 the analyst consensus was $0.05, a difference of $0.08 per share. Shares closed the prior day at $5.18 a share and closed the day at $5.57 an increase of 7.5%.
  • Paychex, Inc. (PAYX) announced earnings after the market close on 2020-07-07. Earnings came in at $0.61 the analyst consensus was $0.61, a difference of $0.00 per share. Shares closed the prior day at $77.78 a share and closed the day at $73.94 a decline of -4.9%.

A couple of the major earnings reports from the prior week were:
  • Conagra Brands Incorporated. (CAG) announced earnings after the market close on 2020-06-30. Earnings came in at $0.75 the analyst consensus was $0.68, a difference of $0.07 per share. Shares closed the prior day at $33.70 a share and closed the day at $35.17 an increase of 4.4%.
  • Constellation Brands. (STZ) announced earnings after the market close on 2020-07-01. Earnings came in at $2.30 the analyst consensus was $2.03, a difference of $0.27 per share. Shares closed the prior day at $174.95 a share and closed the day at $185.88 an increase of 6.2%.
  • Fedex Corporation. (FDX) announced earnings after the market close on 2020-06-30. Earnings came in at $2.53 the analyst consensus was $1.42, a difference of $1.11 per share. Shares closed the prior day at $140.22 a share and closed the day at $156.66 an increase of 11.7%.


Dividend Payments

We will resume the dividend reporting once 3rd quarter dividend payments resume, which will be more meaningful.



The Week Ahead

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

  • Monday:
  • Tuesday: The Bureau of Labor Statistics releases the June Consumer Price Index with an estimate of +0.6% as compared to +0.1% for May.
  • Wednesday: The Federal Reserve Bank of NY releases its Empire State Manufacturing Survey for July with an expected '10' reading after four months of negative reports.
  • Thursday: The Census Bureau reports retail-sales data for June with economists expecting a +5.3% for June after a +17.7% in May as much of the country continues to open after the full lockdown.
  • Friday: The University of Michigan reports their Consumer Sentiment Index for July with a consensus estimate of 79.5% after June's 78.1 reading.

Earnings season will begin to kick in with reports from:

  • Monday: PepsiCo
  • Tuesday: Citigroup, Wells Fargo, JP Morgan Chase
  • Wednesday: Bank of NY Mellon, Goldman Sachs, US Bancorp
  • Thursday: Abbott Labs, Bank of America, Johnson & Johnson, Netflix, Morgan Stanley
  • Friday: Blackrock, Kansas City Southern

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.