The market is in a very strange place right now with an enormous amount of future uncertainty weighing on the performance. On Friday it was announced that President Trump has tested positive for the Corona virus. The technology sector has been struggling for much of September - and since that was the bright spot of the financial markets this year, it's put a lot of pressure on the them. Of course the election and its uncertain outcome has been adding to volatility particularly after a very contentious first presidential debate on the 29th.

All 3 major indexes were up for the week ended 2020-10-02. The Dow Jones Industrial average ended the week at 27,683 an increase of 1.9%. The broader S&P 500 index ended the week at 3,348 an increase of 1.5%. The Nasdaq 100 ended the week at 11,256 an increase of 0.9%. The average change for the major averages was up 1.44%.

Two of the major indexes remain positive year-to-date with the Dow Jones Industrials continuing to lag at -3.0% for the year. The Nasdaq Composite is up 25.4% for the year and the S&P 500 is up 3.6% year to date.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 2.6%, with the iShares Dividend price climbing from $80.51 to $82.57.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 4.6% for the week while large-cap stocks increased by 1.3% and mid-cap stocks increased by 3.3%.

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 growth stocks outperformed large-cap value stocks this week 2.0% vs. 1.6%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 3.1% vs. 2.3%. Small-cap value stocks outperformed Small-cap growth stocks this week 5.3% vs. 4.1%.

Sector View

This past week, with all of the major averages rising, all but one sector ended the week with a gain.

The lone declining sector was the Energy sector. There were 2 prospects weighing on the sector this week --> uncertain about the economy recovery post economic shut-down and the outcome of the debate and presidential election could be weighing on the sector. The energy sector declined 2.5% this past week.

There were some significant gains this week across several sectors with 4 of the 10 sectors that rose this week notching gains in excess of 3%. The Real Estate sector lead the way with a large 5.54% gain for the week. The Financial sector increased 3.87%, the Utilities sector gained 3.3% and the Consumer Discretionary sector increased by 3.02% for the week.



Earnings Roundup

The last several weeks have had only a few earnings releases each week, last week began to pick up a bit as we get ready for the wave of Q3 earnings to start.

  • Ihs Markit Ltd. (INFO) announced earnings after the market close on 2020-09-29. Earnings came in at $0.77 the analyst consensus was $0.69, a difference of $0.08 per share. Revenue estimates were $1,071M but came in at $1,073M, a difference of $3M. Shares closed the prior day at $80.06 a share and closed the day at $77.42 a decline of -3.3%.
  • Micron Technologies. (MU) announced earnings after the market close on 2020-09-29. Earnings came in at $1.08 the analyst consensus was $1.00, a difference of $0.08 per share. Revenue estimates were $5,911M but came in at $6,056M, a difference of $145M. Shares closed the prior day at $50.71 a share and closed the day at $46.96 a decline of -7.4%.
  • Pepsico, Inc. (PEP) announced earnings after the market close on 2020-10-01. Earnings came in at $1.66 the analyst consensus was $1.48, a difference of $0.18 per share. Revenue estimates were $17,288M but came in at $18,091M, a difference of $803M. Shares closed the prior day at $138.60 a share and closed the day at $140.80 an increase of 1.6%.
  • Constellation Brands. (STZ) announced earnings after the market close on 2020-10-01. Earnings came in at $2.76 the analyst consensus was $2.51, a difference of $0.25 per share. Revenue estimates were $2,192M but came in at $2,260M, a difference of $69M. Shares closed the prior day at $189.51 a share and closed the day at $184.61 a decline of -2.6%.


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:
  • Tuesday: The Bureau of Labor Statistics releases job openings and labor turnover for August, with an anticipated decline in openings from 6.62 million in July to 6.25 million for August.
  • Wednesday: The Federal Reserve reports on consumer credit for August. Total consumer debt is expected to increase by $14 Billion to an estimated $4.1 Trillion. Credit has grown in each of the last 3 months after the state induced lockdowns began.
  • Thursday: The Department of Labor reports initial jobless claims. Many economists expect this number to continue to flatting in the 850-900,000 range.
  • Friday:

This weeks earnings releases to watch are:

  • Monday: Cisco, Nvidia
  • Tuesday: Paychex, Levi Strauss
  • Wednesday: Lamb Weston-Holdings
  • Thursday:
  • Friday: Duke Energy

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.