This was another record setting week with the S&P 500 now well into positive territory for the year. The week was highlighted by some major retailers announcing earnings for the latest quarter (more on that below). The problem is, it doesn't really feel like things are so great. There are reports (particularly on CNBC.com) that indicate that more than 60% of stocks are still negative and that most of the gain is in the 6 largest technology stocks lead by Alphabet, Facebook and Amazon.

The major indexes ended the week mixed for the week ended 2020-08-21. The Dow Jones Industrial average ended the week at 27,930 a decline of 0.0%. The broader S&P 500 index ended the week at 3,397 an increase of 0.7%. The Nasdaq 100 ended the week at 11,555 an increase of 3.5%. The average change for the major averages was up 1.41%.

The Dow Jones Industrial Average keeps inching towards being positive for year and is now down 2.1% year-to-date. The S&P 500 is now up 5.1% for the year and the Nasdaq 100 is up 24.3% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 3.2%, with the iShares Dividend price declining from $86.16 to $83.43.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.2% for the week while mid-cap stocks decreased by 0.5% and small-cap stocks decreased by 2.0%.

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 3.4% as compared to -1.3%. Mid-cap growth stocks outperformed mid-cap value stocks 0.7% as compared to -2.8%. Finally, Small-cap growth stocks outperformed small-cap value stocks -0.0% as compared to -4.1%.

Sector View

The market was mixed again this week with a couple of big winners and losers. The range between the largest gaining sector and the largest losing sector was 9.35%, which is a really large spread.

The big losing sectors for this week week were Energy and the Financial sectors. Energy declined by 5.83% last week while the Financial sector declined by 3.58%. Four other sectors declined this week for a total of 6 of the 11 major sectors

The other 5 sectors had some more gains this week. The Consumer Discretionary sector lead this week with a gain of 3.52% followed by the Information Technology sector with a gain of 3.36%.



Earnings Roundup

While the majority of the earnings season is behind us, this was a very big week for the retailers. The following major companies announced earnings this week:

  • The Home Depot, Corporation. (HD) announced earnings after the market close on 2020-08-18. Earnings came in at $4.02 the analyst consensus was $3.82, a difference of $0.20 per share. Revenue estimates were $35,111M but came in at $38,053M, a difference of $2,942M. Shares closed the prior day at $288.24 a share and closed the day at $285.00 a decline of -1.1%.
  • Lowes Companies. (LOW) announced earnings after the market close on 2020-08-19. Earnings came in at $3.75 the analyst consensus was $3.03, a difference of $0.72 per share. Revenue estimates were $24,854M but came in at $27,302M, a difference of $2,448M. Shares closed the prior day at $157.91 a share and closed the day at $158.28 an increase of 0.2%.
  • Walmart Inc. (WMT) announced earnings after the market close on 2020-08-18. Earnings came in at $1.56 the analyst consensus was $1.22, a difference of $0.34 per share. Revenue estimates were $134,876M but came in at $137,742M, a difference of $2,866M. Shares closed the prior day at $135.60 a share and closed the day at $134.71 a decline of -0.7%.
  • Nvidia Corporation. (NVDA) announced earnings after the market close on 2020-08-19. Earnings came in at $2.18 the analyst consensus was $1.94, a difference of $0.24 per share. Revenue estimates were $3,655M but came in at $3,866M, a difference of $211M. Shares closed the prior day at $485.54 a share and closed the day at $485.64 an increase of 0.0%.


Dividend Payments

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



The Week Ahead

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

  • Monday: The Federal Reserve Bank of Chicago releases its National Activity report for July, with economists expecting a 4th consecutive positive reading.
  • Tuesday: The Census Bureau releases its report on new home sales for July. The expectation is for a seasonally adjusted rate of 777.5K homes, roughly the same as the June report.
  • Wednesday: The Census Bureau releases its Durable Goods report for July. Economists are expecting new order to increase by 4.5%.
  • Thursday: The Bureau of Economic Analysis reports Q2 GDP (the 2nd estimate), with an expectation of an unchanged rate of -32.9%
  • Friday: The BEA reports Personal income and spending for July. Economists are expecting spending growth of 1.3% after a decline of 5.6% in June. Income is expected to fall by 0.3%.

This weeks earnings releases to watch are:

  • Monday: Palo Alto Networks
  • Tuesday: Intuit, Medtronic, Bank of Nova Scotia, Bank of Montreal
  • Wednesday: NetApp, Royal Bank of Canada
  • Thursday: Dell Technologies, VMWare, Dollar General, Dollar Tree
  • 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.