This was a very mixed week featuring a slew of large earnings announcements including Microsoft, Tesla and Intel. While all market indexes moved in the same direction, that can't be said for all of the sectors. Many pundits right now are looking at market levels with concern for the overall value/level of the entire market, which seems to be propped up by only a few of the high flying tech stocks. The big feature this week was an increase in initial unemployment claims due largely to a new round of economic shutdowns due to covid-19 spikes in several southern states.

All 3 major indexes were down for the week ended 2020-07-24. The Dow Jones Industrial average ended the week at 26,470 a decline of 0.8%. The broader S&P 500 index ended the week at 3,216 a decline of 0.3%. The Nasdaq 100 ended the week at 10,483 a decline of 1.5%. The average change for the major averages was down 0.85%.

With all three of the major indexes being down this week, each has also pulled back on a year to date basis with the Nasdaq composite up 19% for the year, the S&P 500 almost even at -0.2% and the Dow Jones Industrials bringing up the rear at -6.6% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.0%, with the iShares Dividend price climbing from $83.00 to $83.80.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 0.8% for the week while large-cap stocks decreased by 0.6% and mid-cap stocks decreased by 0.4%.

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, 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 0.0% vs. -0.3%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 0.7% vs. -0.1%. Small-cap value stocks outperformed Small-cap growth stocks this week 0.7% vs. -0.6%.

Sector View

This was an extremely mixed week with the average of all of the sectors inching up 0.18%, which for the most part is even. Five of the 11 sectors declined for the week while six sectors increased on the week.

The declining sectors were lead down by the Information Technology sector which dipped 1.33%, followed by the Healthcare sector (-1.14%) and the Communication Services sector which declined 1.1%. Many of the big technology stocks report earnings this coming week so markets will looking to those stocks for direction.

The sectors that gained this week were lead up by the Energy sector, which climbed 2.18%, Financials which gained 1.32% and the Consumer Discretionary sector which gained 1.01%.



Earnings Roundup

This was a very big week with a lot of S&P companies filing earnings for last quarter. Some of the highlights included:

  • Intel Corporation. (INTC) announced earnings after the market close on 2020-07-23. Earnings came in at $1.23 the analyst consensus was $1.11, a difference of $0.12 per share. Shares closed the prior day at $61.05 a share and closed the day at $60.40 a decline of -1.1%.
  • Microsoft Corporation. (MSFT) announced earnings after the market close on 2020-07-22. Earnings came in at $1.46 the analyst consensus was $1.38, a difference of $0.08 per share. Shares closed the prior day at $211.75 a share and closed the day at $202.54 a decline of -4.3%.
  • Tesla, Inc. (TSLA) announced earnings after the market close on 2020-07-22. Earnings came in at $2.18 the analyst consensus was $-0.49, a difference of $2.67 per share. Shares closed the prior day at $1,568.36 a share and closed the day at $1,592.33 an increase of 1.5%.
  • Verizon Communications. (VZ) announced earnings after the market close on 2020-07-24. Earnings came in at $1.18 the analyst consensus was $1.16, a difference of $0.02 per share. Shares closed the prior day at $55.85 a share and closed the day at $56.85 an increase of 1.8%.
  • Coca-cola Company. (KO) announced earnings after the market close on 2020-07-21. Earnings came in at $0.42 the analyst consensus was $0.40, a difference of $0.02 per share. Shares closed the prior day at $46.12 a share and closed the day at $47.20 an increase of 2.3%.
  • Novartis Ag (NVS) announced earnings after the market close on 2020-07-21. Earnings came in at $1.35 the analyst consensus was $1.29, a difference of $0.06 per share. Shares closed the prior day at $88.01 a share and closed the day at $86.02 a decline of -2.3%.
  • Att Inc. (T) announced earnings after the market close on 2020-07-23. Earnings came in at $0.83 the analyst consensus was $0.78, a difference of $0.05 per share. Shares closed the prior day at $30.16 a share and closed the day at $29.90 a decline of -0.9%.
  • Thermo Fisher Scientific. (TMO) announced earnings after the market close on 2020-07-22. Earnings came in at $3.89 the analyst consensus was $2.67, a difference of $1.22 per share. Shares closed the prior day at $403.09 a share and closed the day at $410.76 an increase of 1.9%.


Dividend Payments

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

  • Costamare Inc (CMRE) paid a dividend of $0.10 on 2020-07-21. The stock closed at $4.74 giving an estimated yield of 8.4%.
  • Pembina Pipeline Cor (PBA) paid a dividend of $0.16 on 2020-07-23. The stock closed at $25.09 giving an estimated yield of 7.4%.
  • Star Gas Partners LP (SGU) paid a dividend of $0.13 on 2020-07-24. The stock closed at $9.03 giving an estimated yield of 5.9%.
  • Petroleo Brasileiro S.A. Petrobras (PBR) paid a dividend of $0.09 on 2020-07-23. The stock closed at $8.96 giving an estimated yield of 3.9%.


The Week Ahead

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

  • Monday: The Census Bureau releases the Durable Goods report for June with an expected increase of 5.5% in new orders after a 15.7% increase in May.
  • Tuesday: The Conference Board releases its Consumer Confidence index for June, with an expected reading of 95.5 slightly below the 98.1 reported for May.
  • Wednesday: The National Association of Realtors releases its Pending Home Sales Index for June with an expected increase of 5.4% after May's record increase of 44.3%
  • Thursday: The Beurea of Economic Analysis reports GDP for the second quarter with an expected decline of 34% after a 5% decline in the second quarter.
  • Friday: The BEA reports personal income and spending for June with an expected decline of 3% in income and a 6% increase in spending.

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

  • Monday: SAP, Hasbro
  • Tuesday: 3M, Advanced Micro Devices, Altria Group, eBay, McDonald's, Starbucks
  • Wednesday: Facebook, General Electric, PayPal Holdings, Shopify
  • Thursday: Alphabet, Amazon, Apple, Comcast, United Parcel Service
  • Friday: AbbVie, Caterpillar, Charter Communications, Colgate-Palmolive, Exxon-Mobil

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.