Last week was an incredibly strong week with all of the major indexes and all of the sectors rising in value. The jobs report, while showing growth, also showed signs of growth putting into question just how fast the economy is growing as we get into the middle of the 3rd quarter of the year. This week had a decline in the number of first time unemployment claims, yet this number still exceeded a million for the 20th straight week.

All 3 major indexes were up for the week ended 2020-08-07. The Dow Jones Industrial average ended the week at 27,433 an increase of 3.8%. The broader S&P 500 index ended the week at 3,351 an increase of 2.5%. The Nasdaq 100 ended the week at 11,139 an increase of 2.1%. The average change for the major averages was up 2.80%.

All of the major indexes, since they were all up this week, continued to make progress year-to-date. Only the Dow Jones Industrial average is lower than it was on December 31st, but now it is down 7.0%. The S&P 500 is now up 3.7% for the year and the tech-laden Nasdaq Composite is now up 24% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 2.4%, with the iShares Dividend price climbing from $83.08 to $85.08.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 5.2% for the week while large-cap stocks increased by 2.7% and mid-cap stocks increased by 2.9%.

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 2.7% as compared to 2.0%. Mid-cap value stocks outperformed mid-cap growth stocks 2.8% as compared to 0.6%. Finally, Small-cap value stocks outperformed small-cap growth stocks 5.5% as compared to 3.6%.

Sector View

As stated above, all of the sectors grew this week in a very broad move up.

The markets were led by the Industrials sector, which grew 4.9%, the Energy sector, which grew 3.7% and the Financials which grew by 3.6%. The laggards, such as they are still grew by over 1% with the Healthcare and Utilities sectors both increasing by 1.2% and Real Estate which grew by 1.24%.



Earnings Roundup

While this week didn't have as many big-name earnings releases as the last 2 weeks have had, there were over 1500 earnings releases that came out this week. Some of the bigger names this week were:

  • Bristol Myers Squibb. (BMY) announced earnings after the market close on 2020-08-06. Earnings came in at $1.63 the analyst consensus was $1.46, a difference of $0.17 per share. Revenue estimates were $10,085M but came in at $10,129M, a difference of $44M. Shares closed the prior day at $59.69 a share and closed the day at $61.33 an increase of 2.7%.
  • The Walt Disney Company. (DIS) announced earnings after the market close on 2020-08-04. Earnings came in at $0.08 the analyst consensus was $-0.43, a difference of $0.51 per share. Revenue estimates were $12,653M but came in at $11,779M, a difference of $-874M. Shares closed the prior day at $117.29 a share and closed the day at $127.61 an increase of 8.8%.
  • Novo Nordisk A/S. (NVO) announced earnings after the market close on 2020-08-06. Earnings came in at $0.67 the analyst consensus was $0.64, a difference of $0.03 per share. Revenue estimates were $4,488M but came in at $4,429M, a difference of $-59M. Shares closed the prior day at $65.09 a share and closed the day at $63.69 a decline of -2.2%.
  • Sony Corporation. (SNE) announced earnings after the market close on 2020-08-04. Earnings came in at $1.74 the analyst consensus was $0.44, a difference of $1.30 per share. Revenue estimates were $0M but came in at $18,307M, a difference of $18,307M. Shares closed the prior day at $81.27 a share and closed the day at $83.37 an increase of 2.6%
  • Activision Blizzard. (ATVI) announced earnings after the market close on 2020-08-04. Earnings came in at $0.97 the analyst consensus was $0.68, a difference of $0.29 per share. Revenue estimates were $1,688M but came in at $2,078M, a difference of $390M. Shares closed the prior day at $86.45 a share and closed the day at $84.32 a decline of -2.5%.
  • Booking Holdings. (BKNG) announced earnings after the market close on 2020-08-06. Earnings came in at $-10.81 the analyst consensus was $-11.81, a difference of $1.00 per share. Revenue estimates were $518M but came in at $630M, a difference of $112M. Shares closed the prior day at $1,751.79 a share and closed the day at $1,754.48 an increase of 0.2%.
  • Cvs Health Corporation. (CVS) announced earnings after the market close on 2020-08-05. Earnings came in at $2.64 the analyst consensus was $1.93, a difference of $0.71 per share. Revenue estimates were $64,090M but came in at $65,341M, a difference of $1,251M. Shares closed the prior day at $64.98 a share and closed the day at $64.40 a decline of -0.9%
  • Square, Inc. (SQ) announced earnings after the market close on 2020-08-04. Earnings came in at $0.18 the analyst consensus was $-0.07, a difference of $0.25 per share. Revenue estimates were $1,140M but came in at $1,924M, a difference of $783M. Shares closed the prior day at $136.83 a share and closed the day at $146.55 an increase of 7.1%.


Dividend Payments

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

  • Vornado Realty Trust (VNO) paid a dividend of $0.53 on 2020-08-07. The stock closed at $35.55 giving an estimated yield of 6.0%.
  • Bank of Montreal (BMO) paid a dividend of $0.79 on 2020-08-03. The stock closed at $54.84 giving an estimated yield of 5.8%.
  • Hope Bancorp Inc (HOPE) paid a dividend of $0.14 on 2020-08-07. The stock closed at $8.78 giving an estimated yield of 6.4%.
  • Cedar Shopping Centers Inc (CDR) paid a dividend of $0.01 on 2020-08-07. The stock closed at $0.8958 giving an estimated yield of 4.5%.


The Week Ahead

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

  • Monday: The Bureau of Labor Statistics releases its Job Openings and Labor Turnover survey for June with an estimated 5.1 million job openings as compared to 5.4 million in May.
  • Tuesday: The BLS releases the producer price index for July with an expected increase of 0.2% after a decline of 0.2% in June.
  • Wednesday: /LI>
  • Thursday: Initial jobless claims are reported by The Department of Labor, with an expected 21st consecutive week exceeding 1 million.
  • Friday: The Census Bureau reports retail sales data for July with an expected increase of 2% compared to an increase of 7.5% in June.

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

  • Monday: Duke Energy, Liberty Media, Barrick Gold
  • Tuesday: Sysco
  • Wednesday: Cisco, Lyft
  • Thursday: Baidu, Applied Materials, Tapestry
  • 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.