We had a pretty mixed week this week with 2 of the major indexes declining and the other coming in essentially flat, however 5 of the 11 sectors ended the week with an increase. The week was highlighted with several high profile technology IPOs like Snowflake, which nearly doubled their offering price during its first trading day.

All 3 major indexes were down for the week ended 2020-09-18. The Dow Jones Industrial average ended the week at 27,657 essentially even with last week. The broader S&P 500 index ended the week at 3,319 a decline of 0.6%. The Nasdaq 100 ended the week at 10,937 a decline of 1.4%. The average change for the major averages was down 0.68%.

Two of the major indexes are still up for the year, with the S&P 500 advance narrowing on its decline this week. The Dow Jones Industrial average ended this week with a year-to-date decline of 3.1%. The S&P 500, still in positive territory with a year-to-date tally of +2.7%. The Nasdaq Composite is still 21.9% up this year-to-date.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 0.8%, with the iShares Dividend price climbing from $83.97 to $84.60.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks increased by 1.2% for the week while large-cap stocks decreased by 0.1% and small-cap stocks increased by 0.6%

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, there was a mixture in performance between growth and value stocks based on the capitalization of the underlying companies. Large-cap value stocks outperformed large-cap growth stocks this week 0.3% vs. -0.9%. Mid-cap growth stocks outperformed Mid-cap value stocks this week 1.3% vs. 0.9%. Small-cap growth stocks outperformed Small-cap value stocks this week 2.2% vs. 1.4%.

Sector View

This week, from a sector perspective was very mixed. Five of the 11 sectors gained this week while six had a decline.

The advancing sectors this week were: Energy (+1.75%), Healthcare (+1.59%), Industrials (+1.24%), Information Technology (+1.0%) and Materials (+0.6%).

The declining sectors for the week were: Financials (-0.75%), Real Estate (-0.75%), Consumer Discretionary (-0.77%), Utilities (-1.41%), Communication Services (-1.55%) and Consumer Staples (-1.95%).



Earnings Roundup

This was another extremely light week for earnings reports with only 60 companies reporting this week. Some of the bigger releases this week were:

  • Adobe Systems Incorporated. (ADBE) announced earnings after the market close on 2020-09-15. Earnings came in at $2.57 the analyst consensus was $2.40, a difference of $0.17 per share. Revenue estimates were $3,153M but came in at $3,225M, a difference of $72M. Shares closed the prior day at $497.67 a share and closed the day at $476.00 a decline of -4.4%.
  • Cracker Barrel, Inc. (CBRL) announced earnings after the market close on 2020-09-15. Earnings came in at $-0.85 the analyst consensus was $-0.55, a difference of $-0.30 per share. Revenue estimates were $484M but came in at $495M, a difference of $11M. Shares closed the prior day at $138.10 a share and closed the day at $131.21 a decline of -5.0%.
  • Fedex Corporation. (FDX) announced earnings after the market close on 2020-09-15. Earnings came in at $4.87 the analyst consensus was $2.59, a difference of $2.28 per share. Revenue estimates were $17,459M but came in at $19,321M, a difference of $1,862M. Shares closed the prior day at $236.67 a share and closed the day at $250.30 an increase of 5.8%.
  • Lennar Corporation. (LEN) announced earnings after the market close on 2020-09-14. Earnings came in at $2.12 the analyst consensus was $1.51, a difference of $0.61 per share. Revenue estimates were $5,332M but came in at $5,870M, a difference of $538M. Shares closed the prior day at $79.00 a share and closed the day at $75.90 a decline of -3.9%.


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 of Chicago issues its National Activity Index for August with an estimated reading of 1.2, even with July.
  • Tuesday: The National Association of Realtors reports existing home sales for August with an estimated 5.88 million units sold, slightly ahead of July's estimate of 5.86 million.
  • Wednesday: The Federal Housing Finance Agency issues its price index for July with an estimated national increase of 5.4% which should be led by western states like Idaho, Arizona and Utah,
  • Thursday: The Census Bureau reports on new-home sales for August with a seasonally adjusted estimate of 860,000 units, below the July estimate of 901,000
  • Friday: The Census Bureau issues their report on Durable Goods for August with a forecasted gain of 1.2%.

This weeks earnings releases to watch are:

  • Monday:
  • Tuesday: Auto Zone, Nike
  • Wednesday: Cintas, General Mills
  • Thursday: CarMax, Costco Wholesale, Darden Restaurants
  • 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.