The market performed very well last week on hopes that our essentially collapsed political system will put together a stimulus deal as the economy and jobs seem to be slowing down heading into the election. This weeks hoped pushed the Dow back into positive territory after slipping negative a few weeks ago.

All 3 major indexes were up for the week ended 2020-10-09. The Dow Jones Industrial average ended the week at 28,587 an increase of 3.3%. The broader S&P 500 index ended the week at 3,477 an increase of 3.8%. The Nasdaq 100 ended the week at 11,726 an increase of 4.2%. The average change for the major averages was up 3.76%.

As previously stated, all three major indexes have a positive position year-to-date. The Nasdaq Composite which has been leading the market higher since the pandemic shut the economy down is now up 30.7% for the year. The S&P 500 is up 7.66% and the Dow Jones Industrial is bringing up the rear with a 0.2% return for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 4.9%, with the iShares Dividend price climbing from $82.57 to $86.58.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 4.7% for the week while large-cap stocks increased by 3.6% and mid-cap stocks increased by 3.8%.

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 3.6% as compared to 3.4%. Mid-cap growth stocks outperformed mid-cap value stocks 5.5% as compared to 4.6%. Finally, Small-cap growth stocks outperformed small-cap value stocks 7.3% as compared to 4.9%.

Sector View

This week was a return to all of the sectors moving in concert with each other. All 11 sectors grew by an average of 4% (yes, that's a little different from the average of the indexes, but we use ETFs to measure performance so that individuals can track the market just like they could easily buy it.)

Since there were no losers this week, the losers are just the laggers this week. The big laggard this last week was the Real Estate sector which brought up the rear with a 1.27% return this last week. All of the other sectors gained 2.5% or more for the week.

The big gainers this last week were the Energy sector (+5.28%), the Materials sector (+5.25%), the Information Technology sector (+4.88%) and the Healthcare sector (+4.81%).



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.

  • Carnival Corporation. (CCL) announced earnings after the market close on 2020-10-08. Earnings came in at $-2.19 the analyst consensus was $-2.22, a difference of $0.03 per share. Revenue estimates were $100M but came in at $31M, a difference of $-69M. Shares closed the prior day at $15.99 a share and closed the day at $15.61 a decline of -2.4%.
  • Dominos Pizza Incorporated. (DPZ) announced earnings after the market close on 2020-10-08. Earnings came in at $2.49 the analyst consensus was $2.75, a difference of $-0.26 per share. Revenue estimates were $946M but came in at $968M, a difference of $22M. Shares closed the prior day at $431.05 a share and closed the day at $401.01 a decline of -7.0%.
  • Levi Strauss Corporation. (LEVI) announced earnings after the market close on 2020-10-06. Earnings came in at $0.08 the analyst consensus was $-0.27, a difference of $0.35 per share. Revenue estimates were $767M but came in at $1,063M, a difference of $296M. Shares closed the prior day at $14.74 a share and closed the day at $15.49 an increase of 5.1%.
  • Paychex, Inc. (PAYX) announced earnings after the market close on 2020-10-06. Earnings came in at $0.63 the analyst consensus was $0.56, a difference of $0.07 per share. Revenue estimates were $895M but came in at $932M, a difference of $37M. Shares closed the prior day at $81.45 a share and closed the day at $79.43 a decline of -2.5%.


Dividend Payments

  • Mastercard Inc (MA) paid a dividend of $0.40 on 2020-10-08. The stock closed at $345.15 giving an estimated yield of 0.5%.
  • American Express Company (AXP) paid a dividend of $0.43 on 2020-10-08. The stock closed at $106.06 giving an estimated yield of 1.6%.
  • Universal Corp (UVV) paid a dividend of $0.77 on 2020-10-08. The stock closed at $43.49 giving an estimated yield of 7.1%.
  • Ethan Allen Interiors Inc (ETH) paid a dividend of $0.21 on 2020-10-07. The stock closed at $15.13 giving an estimated yield of 5.6%.

    The Week Ahead

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

    • Monday: The bond markets are closed for Columbus Day
    • Tuesday: The Bureau of Labor Statistics releases its consumer price index for September with an expected increase of 1.4% vs. August's 1.3% increase.
    • Wednesday: The BLS releases the producer price index for September with an expected uptick of 0.2%, compared to Augusts increase of 0.3%
    • Thursday: The Department of Labor releases initial jobless claims for this past week with claims still up over 800,000 per week although lower than they have been.
    • Friday: The University of Michigan releases its Consumer Sentiment Index for October with an expected reading similar to Septembers 80.2

    Earnings season kicks off this week with the following releases to watch:

    • Monday:
    • Tuesday: Citigroup, JP Morgan Chase, Blackrock, Delta Airlines
    • Wednesday: Goldman Sachs, UnitedHealth Group, US Bancorp
    • Thursday: Morgan Stanley, Walgreens Boots Alliance
    • Friday: VF Corporation, Schlumberger, State Street

    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.