This past week was evidence that the financial markets don't always go in the same direction, up. All of the major indexes and the majority of the sectors declined last week, a lot of this decline has been speculated that there was option/coverage activity, but it could also be that the market indexes may have gotten ahead of themselves and needed to have a pull-back.

All 3 major indexes were down for the week ended 2020-09-04. The Dow Jones Industrial average ended the week at 28,133 a decline of 1.8%. The broader S&P 500 index ended the week at 3,427 a decline of 2.3%. The Nasdaq 100 ended the week at 11,622 a decline of 3.1%. The average change for the major averages was down 2.41%.

With this weeks' decline, the Dow Jones Industrial Average, which had just broken ahead on a year-to-date basis, ended the week down for the year once again. The Dow is down 1.4% since the close on 12/31. The S&P 500 is now up 6.1% for the year and the tech-heavy Nasdaq 100 is up by 29.5% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.2%, with the iShares Dividend price declining from $85.64 to $85.47.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 1.5% for the week while large-cap stocks decreased by 1.9% and small-cap stocks decreased by 1.6%.

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 -0.7% as compared to -3.6%. Mid-cap value stocks outperformed mid-cap growth stocks -0.4% as compared to -3.8%. Finally, Small-cap value stocks outperformed small-cap growth stocks -0.6% as compared to -4.2%.

Sector View

Overall, this was a pretty down week, even across the sectors. Two sectors did eek out a gain for the week but the rest were solidly down.

The sectors that gained last week were the Materials and the Utilities sectors. The former increased by 0.54% for the week and the later 0.18%.

The two worst performing sectors last week were the Energy sector, which declined 4.67% and the Information Technology sector, which declined 4.16% for the week. Also, hit pretty hard this week was the Consumer Discretionary sector which declined by 3.06%.



Earnings Roundup

This was a very light earnings week with only 136 companies reporting earnings this week. Here are a few of the highlights:

  • Broadcom Inc. (AVGO) announced earnings after the market close on 2020-09-03. Earnings came in at $5.40 the analyst consensus was $5.24, a difference of $0.16 per share. Revenue estimates were $5,781M but came in at $5,821M, a difference of $40M. Shares closed the prior day at $352.09 a share and closed the day at $362.95 an increase of 3.1%.
  • Docusign Inc. (DOCU) announced earnings after the market close on 2020-09-03. Earnings came in at $0.17 the analyst consensus was $0.07, a difference of $0.10 per share. Revenue estimates were $318M but came in at $342M, a difference of $24M. Shares closed the prior day at $242.01 a share and closed the day at $216.26 a decline of -10.6%.
  • Macys, Inc. (M) announced earnings after the market close on 2020-09-02. Earnings came in at $-0.81 the analyst consensus was $-1.78, a difference of $0.97 per share. Revenue estimates were $3,511M but came in at $3,559M, a difference of $48M. Shares closed the prior day at $7.01 a share and closed the day at $7.05 an increase of 0.6%
  • Zoom Video Communication. (ZM) announced earnings after the market close on 2020-08-31. Earnings came in at $0.92 the analyst consensus was $0.45, a difference of $0.47 per share. Revenue estimates were $498M but came in at $664M, a difference of $165M. Shares closed the prior day at $325.10 a share and closed the day at $457.69 an increase of 40.8%.


Dividend Payments

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

  • Brookfield Property Partners L (BPY) paid a dividend of $0.33 on 2020-08-28. The stock closed at $11.9 giving an estimated yield of 11.2%.

The Week Ahead

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

  • Monday: The US stock and bond markets are closed for Labor Day.
  • Tuesday: The National Federation of Independent Business reports its Small Business Optimism Index for August with an expected reading of 98.9, the same as July.
  • Wednesday: The Bureau of Labor Statistics reports on Job Openings and Labor Turnover for July with economists anticipating 6 million job openings as of 7/31, up from 5.9 million on 6/30.
  • Thursday: The European Central Bank issues its monetary-policy decision with no change expected to the current -0.5% rate.
  • Friday: The BLS releases the Consumer Price Index for August with an estimated increase of 1.2%, ahead of July's 1.0%

This weeks earnings releases to watch are:

  • Monday:
  • Tuesday: Coupa Software, Lululemon Athletica, Slack Technologies
  • Wednesday: HD Supply Holdings, Navistar International
  • Thursday: Oracle, Chewy, Peloton Interactive
  • Friday: Kroger holds their conference call

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.