A very strong July ended on a strong note. There were over 1,000 earnings reports this week with 4 of the biggest players reporting earnings, all on Thursday closing out a strong week and strong month for all of the major indexes. One earnings surprise this week came from Alphabet, the parent company of Google which announced their first revenue decline in company history on Thursday after the bell. The earnings shrugged off a second consecutive increase in initial unemployment claims due to the spike in "cases" in several states.

The major indexes ended the week mixed for the week ended 2020-07-31. The Dow Jones Industrial average ended the week at 26,428 a decline of 0.2%. The broader S&P 500 index ended the week at 3,271 an increase of 1.7%. The Nasdaq 100 ended the week at 10,906 an increase of 4.0%. The average change for the major averages was up 1.87%.

The strong week in the Information Technology sector giants of Google (Alphabet), Amazon, Facebook and Apple propelled the Nasdaq to a 21% YTD advance and the S&P 500 turning positive for the year, now up 1.2% and the crippled Dow is now only down 7.4% for the year, even with Boeing keeping that index down for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.9%, with the iShares Dividend price declining from $83.80 to $83.08.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 2.7% for the week while mid-cap stocks increased by 1.6% and small-cap stocks increased by 0.2%.

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 2.6% as compared to -0.9%. Mid-cap growth stocks outperformed mid-cap value stocks 3.3% as compared to -1.1%. Finally, Small-cap growth stocks outperformed small-cap value stocks 2.6% as compared to -0.7%.

Sector View

While still a somewhat mixed week with 3 of the 11 sectors ending the week down, the big story was the the sectors that advanced this week.

The 8 advancing sectors were lead by the Information Technology sector which climbed 5.1% for the week followed by Real Estate (+4.12%), Communication Services (+2.41%) and the Consumer Discretionary sector (+2.16%).

With such a strong week, there were the 3 sectors that were negative this week including; Energy which declined 3.7%, Materials (-1.8%) and Financials (-1.1%) all had difficult weeks.



Earnings Roundup

This was a very busy earnings week with over 1,000 companies reporting earnings this week. The big releases this week were:

  • Apple Inc. (AAPL) announced earnings after the market close on 2020-07-30. Earnings came in at $2.58 the analyst consensus was $2.03, a difference of $0.55 per share. Revenue estimates were $51,935M but came in at $59,685M, a difference of $7,750M. Shares closed the prior day at $384.76 a share and closed the day at $425.04 an increase of 10.5%.
  • Amazon.com, Inc. (AMZN) announced earnings after the market close on 2020-07-30. Earnings came in at $10.30 the analyst consensus was $1.74, a difference of $8.56 per share. Revenue estimates were $81,559M but came in at $88,912M, a difference of $7,353M. Shares closed the prior day at $3,051.88 a share and closed the day at $3,164.68 an increase of 3.7%.
  • Facebook, Inc. (FB) announced earnings after the market close on 2020-07-30. Earnings came in at $1.80 the analyst consensus was $1.44, a difference of $0.36 per share. Revenue estimates were $17,290M but came in at $18,687M, a difference of $1,397M. Shares closed the prior day at $234.50 a share and closed the day at $253.67 an increase of 8.2%.
  • Alphabet Inc. (GOOG) announced earnings after the market close on 2020-07-30. Earnings came in at $10.13 the analyst consensus was $8.43, a difference of $1.70 per share. Revenue estimates were $30,583M but came in at $31,603M, a difference of $1,020M. Shares closed the prior day at $1,522.02 a share and closed the day at $1,531.45 an increase of 0.6%.
  • Merck Co., Inc. (MRK) announced earnings after the market close on 2020-07-31. Earnings came in at $1.37 the analyst consensus was $1.14, a difference of $0.23 per share. Revenue estimates were $10,917M but came in at $10,872M, a difference of $-45M. Shares closed the prior day at $78.99 a share and closed the day at $80.24 an increase of 1.6%.
  • Pfizer Inc. (PFE) announced earnings after the market close on 2020-07-28. Earnings came in at $0.78 the analyst consensus was $0.64, a difference of $0.14 per share. Revenue estimates were $11,876M but came in at $11,801M, a difference of $-75M. Shares closed the prior day at $37.54 a share and closed the day at $39.02 an increase of 3.9%.
  • Procter Gamble. (PG) announced earnings after the market close on 2020-07-30. Earnings came in at $1.16 the analyst consensus was $1.01, a difference of $0.15 per share. Revenue estimates were $16,952M but came in at $17,698M, a difference of $746M. Shares closed the prior day at $128.31 a share and closed the day at $131.42 an increase of 2.4%.
  • Visa Inc. (V) announced earnings after the market close on 2020-07-28. Earnings came in at $1.06 the analyst consensus was $1.02, a difference of $0.04 per share. Revenue estimates were $4,807M but came in at $4,837M, a difference of $30M. Shares closed the prior day at $196.74 a share and closed the day at $198.58 an increase of 0.9%.


Dividend Payments

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

  • Oneok Inc (OKE) paid a dividend of $0.94 on 2020-07-31. The stock closed at $27.91 giving an estimated yield of 13.4%.
  • Plains All American Pipeline LP (PAA) paid a dividend of $0.18 on 2020-07-30. The stock closed at $7.71 giving an estimated yield of 9.3%.
  • Kinder Morgan (KMI) paid a dividend of $0.26 on 2020-07-31. The stock closed at $14.1 giving an estimated yield of 7.4%.
  • Citigroup Inc (C) paid a dividend of $0.51 on 2020-07-31. The stock closed at $50.01 giving an estimated yield of 4.1%.


The Week Ahead

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

  • Monday: The Census Bureau reports on residential construction spending for June with economists expecting a 1.3% increase to an annualized $1.4T.
  • Tuesday:
  • Wednesday: ADP releases its National Employment report for July expecting an increase of 2.1 million private sector jobs added in the month.
  • Thursday: After 2 consecutive weeks of increased first time filings, the Department of Labor releases its initial jobless claims for the week ended 8/1, most economists are expecting another week exceeding 1 million.
  • Friday: The Bureau of Labor releast the July jobs report. Economists are expecting 2 million added jobs with an expectation that the unemployment rate drops from 11.1% to 10.5%.

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

  • Monday: AIG, Clorox, Tyson Foods
  • Tuesday: Activision Blizzard, Emerson Electric, Fox, Walt Disney
  • Wednesday: BorgWarner, CVS Health, Honda Motor, Western Digital
  • Thursday: Bristol-Myers Squibb, Illumnia, Motorola, T-Mobile US
  • Friday: Ameren, Kimco

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.