This past week was a moderately mixed week but an otherwise good week to open Q2 earnings season. Three sectors were down this week, but these have been the sectors that drove the market since the bottom back in March.

The major indexes ended the week mixed for the week ended 2020-07-17. The Dow Jones Industrial average ended the week at 26,672 an increase of 2.3%. The broader S&P 500 index ended the week at 3,225 an increase of 1.2%. The Nasdaq 100 ended the week at 10,645 a decline of 1.8%. The average change for the major averages was up 0.59%.

The S&P500 inched closer to breakeven for the year and is now down less than 1% at -0.8%. The Nasdaq Composite is up 22.1% but the real laggard is the Dow Jones Industrial, which is down 6.5% year to date, largely due to struggling Boeing.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 3.8%, with the iShares Dividend price climbing from $79.94 to $83.00.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks increased by 4.6% for the week while large-cap stocks increased by 3.0% and small-cap stocks increased by 3.9%.

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 value stocks of all 3 capitalization groups outperformed the growth stocks. Large-cap value stocks outperformed large-cap growth stocks 2.5% as compared to -1.1%. Mid-cap value stocks outperformed mid-cap growth stocks 4.8% as compared to 0.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 4.5% as compared to 1.5%.

Sector View

As mentioned above this was a mixed week this past week with 3 sectors declining and the other 8 increasing, some quite strongly.

The declining sectors this week were the Consumer Discretionary sector (-1.23%), the Information Technology sector (-1.21%) and the Communication Services sector (-0.4%)

This was a very strong week for the sectors that increased this week, driven by the Industrials sector (+5.78%), the Materials sector (+5.6%), Healthcare (+4.87%) and the Utilities sector (+4.16%).



Earnings Roundup

This past week was the beginning of the Q2 earnings season with several in the financial sector reporting earnings. Next week is the heart of the earnings season with many in the S&P 500 reporting earnings. Here's some of the highlights from this past week:

  • Johnson Johnson Corporation. (JNJ) announced earnings after the market close on 2020-07-16. Earnings came in at $1.67 the analyst consensus was $1.50, a difference of $0.17 per share. Shares closed the prior day at $148.26 a share and closed the day at $149.25 an increase of 0.7%.
  • Jpmorgan Chase Incorporated. (JPM) announced earnings after the market close on 2020-07-14. Earnings came in at $1.38 the analyst consensus was $1.34, a difference of $0.04 per share. Shares closed the prior day at $97.65 a share and closed the day at $98.21 an increase of 0.6%.
  • Netflix, Inc. (NFLX) announced earnings after the market close on 2020-07-16. Earnings came in at $1.59 the analyst consensus was $1.84, a difference of $-0.25 per share. Shares closed the prior day at $527.39 a share and closed the day at $492.99 a decline of -6.5%.
  • Unitedhealth Group. (UNH) announced earnings after the market close on 2020-07-15. Earnings came in at $7.12 the analyst consensus was $5.18, a difference of $1.94 per share. Shares closed the prior day at $308.52 a share and closed the day at $304.07 a decline of -1.4%.
  • Abbott Laboratories. (ABT) announced earnings after the market close on 2020-07-16. Earnings came in at $0.57 the analyst consensus was $0.43, a difference of $0.14 per share. Shares closed the prior day at $96.73 a share and closed the day at $96.40 a decline of -0.3%.
  • Bank Of America Corporation. (BAC) announced earnings after the market close on 2020-07-16. Earnings came in at $0.37 the analyst consensus was $0.28, a difference of $0.09 per share. Shares closed the prior day at $24.60 a share and closed the day at $23.93 a decline of -2.7%.
  • Citigroup Inc. (C) announced earnings after the market close on 2020-07-14. Earnings came in at $0.50 the analyst consensus was $0.47, a difference of $0.03 per share. Shares closed the prior day at $52.20 a share and closed the day at $50.15 a decline of -3.9%.
  • Morgan Stanley (MS) announced earnings after the market close on 2020-07-16. Earnings came in at $2.04 the analyst consensus was $1.17, a difference of $0.87 per share. Shares closed the prior day at $51.35 a share and closed the day at $52.64 an increase of 2.5%.


Dividend Payments

We've resumed the updates of this section after getting a new update of this data

  • Shaw Communications Inc (SJR) paid a dividend of $0.07 on 2020-07-14. The stock closed at $17.57 giving an estimated yield of 5.0%.
  • Abbvie Inc (ABBV) paid a dividend of $1.18 on 2020-07-14. The stock closed at $98.87 giving an estimated yield of 4.8%.
  • Life Storage (LSI) paid a dividend of $1.07 on 2020-07-13. The stock closed at $94.1 giving an estimated yield of 4.5%.
  • PNC Bank (PNC) paid a dividend of $1.15 on 2020-07-16. The stock closed at $104.99 giving an estimated yield of 4.4%.


The Week Ahead

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

  • Monday:
  • Tuesday: The Senate Banking Committee votes on nominees Judy Shelton and Christopher Waller as members of the Board of Governors of the Federal Reserve System.
  • Wednesday: The National Association of Realtors reports existing home sales for June with an expected 25% jump in sales after falling for 3 months due to the lockdown.
  • Thursday: The Department of Labor reports initial jobless claims for the week and have declined for 15 straight weeks after peaking at 6.9 million in late March.
  • Friday: The Census Bureau reports new residential home-sales data for June with an expected rise of 4.9% to 705K unites.

Q2 Earnings season continues this week with the following companies reporting:

  • Monday: IBM, Halliburton
  • Tuesday: Capital One Financial, Coca-Cola, Lockheed Marting, United Airlines Holdings
  • Wednesday: Chipotle Mexican Grill, CSX, Microsoft, Tesla
  • Thursday: AT&T, American Airlines Group, Intel, Southwest Airlines
  • Friday: Verizon Communications, Honeywell International, Schlumberger

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.