Several times this week the S&P 500 approached record territory, erasing most the losses from the economic shutdown due to the crud (that's the coronavirus). The Senate went home without a new economic stimulus package being passed, the President signed an executive order and the House didn't pass anything either -- so all is the same in Washington.

All 3 major indexes were up for the week ended 2020-08-14. The Dow Jones Industrial average ended the week at 27,931 an increase of 1.8%. The broader S&P 500 index ended the week at 3,373 an increase of 0.6%. The Nasdaq 100 ended the week at 11,164 an increase of 0.2%. The average change for the major averages was up 0.89%.

The Dow Jones Industrial average approached breakeven for the year and is currently down 2.1%. The S&P 500 and Nasdaq Composites are both up for the year at +4.4% and +24.4% respectively.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.3%, with the iShares Dividend price climbing from $85.08 to $86.16.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.5% for the week while mid-cap stocks increased by 0.4% and small-cap stocks increased 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, the value stocks of all 3 capitalization groups outperformed the growth stocks. Large-cap value stocks outperformed large-cap growth stocks 0.9% as compared to -0.3%. Mid-cap value stocks outperformed mid-cap growth stocks 2.3% as compared to -0.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 2.2% as compared to -0.7%.

Sector View

The market was mixed across the industries with 4 industries declining, 6 industries rising and 1 essentially flat. The Information Technology sector came in at +0.04%, which we will call flat.

The Healthcare sector was the big loser for the week with the sector declining 5.7% for the week. The Utilities and Real Estate sectors both declined by 1.8% and 1.5% respectively.

There were 3 sectors that helped drive the market up with increases in excess of 2% for the week. The Energy sector lead the way with an increase of 2.95% followed by the Industrials sector at +2.77% and the Consumer Discretionary sector at +2.34%.



Earnings Roundup

While this week didn't have as many big-name earnings releases there were still over 800 earnings announcements this week as we are slowly coming to the end of this earnings season with all eyes looking towards the third quarter and wondering how much growth will be there.

  • Applied Materials. (AMAT) announced earnings after the market close on 2020-08-13. Earnings came in at $1.06 the analyst consensus was $0.95, a difference of $0.11 per share. Revenue estimates were $4,197M but came in at $4,395M, a difference of $198M. Shares closed the prior day at $65.07 a share and closed the day at $67.62 an increase of 3.9%.
  • Brookfield Asset Management. (BAM) announced earnings after the market close on 2020-08-13. Earnings came in at $-0.43 the analyst consensus was $0.43, a difference of $-0.86 per share. Revenue estimates were $0M but came in at $12,829M, a difference of $12,829M. Shares closed the prior day at $33.85 a share and closed the day at $33.26 a decline of -1.7%.
  • Baidu, Inc. (BIDU) announced earnings after the market close on 2020-08-13. Earnings came in at $2.08 the analyst consensus was $1.39, a difference of $0.69 per share. Revenue estimates were $3,659M but came in at $3,685M, a difference of $26M. Shares closed the prior day at $124.57 a share and closed the day at $116.74 a decline of -6.3%.
  • IAC Interactive Corp. (IAC) announced earnings after the market close on 2020-08-10. Earnings came in at $-0.21 the analyst consensus was $-0.12, a difference of $-0.09 per share. Revenue estimates were $700M but came in at $726M, a difference of $27M. Shares closed the prior day at $131.27 a share and closed the day at $120.97 a decline of -7.8%.


Dividend Payments

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

  • Sandy Spring Bancorp (SASR) paid a dividend of $0.30 on 2020-08-11. The stock closed at $25.41 giving an estimated yield of 4.7%.
  • Southern Company (SO) paid a dividend of $0.64 on 2020-08-14. The stock closed at $53.56 giving an estimated yield of 4.8%.
  • Santander Consumer USA Holdings (SC) paid a dividend of $0.22 on 2020-08-12. The stock closed at $18.16 giving an estimated yield of 4.8%.
  • Cna Financial Corp (CNA) paid a dividend of $0.37 on 2020-08-14. The stock closed at $33.76 giving an estimated yield of 4.4%.


The Week Ahead

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

  • Monday: The Democratic National Convention kicks off and will run thru the 20th.
  • Tuesday: New residential construction will be reported by the US Census Bureau with an expected reading of 1.25 million units as compared to the 1.18 million in June.
  • Wednesday: The FOMC releases minutes from their July 28-29 policy meeting, with their view on the future course of policy decisions for the Fed.
  • Thursday: The Diffusion Index, reported by the Philadelphia Fed, a measure of manufacturing activity is expected to fall in August to 21 as compared to July's 24.1 reading.
  • Friday: Existing Home Sales for July will be reported by the National Association of Realtors with a seasonally adjusted rate of 5.4 million units vs. June's 4.7 million

This weeks earnings releases to watch are:

  • Monday: JD.com
  • Tuesday: Home Depot, Walmart, Kohl's
  • Wednesday: Lowe's, Alcon, Target
  • Thursday: Alibaba Group, Estee Lauder, L Brands, Ross Stores
  • Friday: Deere, Foot Locker

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.