This past week was a bit choppy but overall ended with a decline for the week. There was a little stimulus talk but by the end of the week the enthusiasm was muted. The last debate happened on Thursday night and the Pelosi threat of 48-hours was really for nothing. The closer we get to the election, we feel the less likely that there's a deal before the election - largely because it could help the president (rightly or wrongly).

All 3 major indexes were down for the week ended 2020-10-23. The Dow Jones Industrial average ended the week at 28,336 a decline of 0.9%. The broader S&P 500 index ended the week at 3,465 a decline of 0.5%. The Nasdaq 100 ended the week at 11,693 a decline of 1.3%. The average change for the major averages was down 0.94%.

The decline in the Dow this week kept the average under water for the year with a current level of -0.7%. The other two major indexes are positive with the S&P 500 currently at +7.3% and the tech heavy Nasdaq composite at a lofty +30.3%.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.4%, with the iShares Dividend price climbing from $86.35 to $87.59.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 1.2% for the week while large-cap stocks decreased by 1.1% and mid-cap stocks decreased by 0.2%.

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 -1.3%. Mid-cap value stocks outperformed mid-cap growth stocks 2.2% as compared to -0.4%. Finally, Small-cap value stocks outperformed small-cap growth stocks 2.1% as compared to -0.8%.

Sector View

This was a somewhat mixed week with 4 sectors notching gains and 7 coming in with decreases this week. The sectors that registered gains this week were all pretty strong with all gaining more than 1%.

The sectors gaining this week were; Communication Services (+2.58%), Utilities (+1.37%), Financials (+1.35%) and Energy (+1.0%).

The remaining sectors declined this week with Information Technology leading things down at -2.26%, Consumer Staples (-1.16%) and Consumer Discretionary (-0.6%).



Earnings Roundup

The beginning of earnings season was last week with a few of the financial powerhouses releasing earnings. This week there were over 400 earnings releases as things started to roll. Some of the key releases this week were:

  • Intel Corporation. (INTC) announced earnings after the market close on 2020-10-22. Earnings came in at $1.11 the analyst consensus was $1.10, a difference of $0.01 per share. Revenue estimates were $18,206M but came in at $18,333M, a difference of $127M. Shares closed the prior day at $53.50 a share and closed the day at $53.90 an increase of 0.7%.
  • Procter & Gamble Inc. (PG) announced earnings after the market close on 2020-10-20. Earnings came in at $1.63 the analyst consensus was $1.43, a difference of $0.20 per share. Revenue estimates were $18,330M but came in at $19,318M, a difference of $988M. Shares closed the prior day at $141.91 a share and closed the day at $142.48 an increase of 0.4%.
  • Tesla, Inc. (TSLA) announced earnings after the market close on 2020-10-21. Earnings came in at $0.76 the analyst consensus was $0.55, a difference of $0.21 per share. Revenue estimates were $8,285M but came in at $8,771M, a difference of $486M. Shares closed the prior day at $422.64 a share and closed the day at $425.79 an increase of 0.7%.
  • Verizon Communications. (VZ) announced earnings after the market close on 2020-10-21. Earnings came in at $1.25 the analyst consensus was $1.22, a difference of $0.03 per share. Revenue estimates were $31,572M but came in at $31,543M, a difference of $-29M. Shares closed the prior day at $57.25 a share and closed the day at $56.75 a decline of -0.9%.
  • Abbott Laboratories. (ABT) announced earnings after the market close on 2020-10-21. Earnings came in at $0.98 the analyst consensus was $0.90, a difference of $0.08 per share. Revenue estimates were $8,458M but came in at $8,853M, a difference of $395M. Shares closed the prior day at $108.36 a share and closed the day at $105.93 a decline of -2.2%.
  • Cocacola Companies. (KO) announced earnings after the market close on 2020-10-22. Earnings came in at $0.55 the analyst consensus was $0.45, a difference of $0.10 per share. Revenue estimates were $8,353M but came in at $8,652M, a difference of $299M. Shares closed the prior day at $49.99 a share and closed the day at $50.68 an increase of 1.4%.
  • Netflix, Inc. (NFLX) announced earnings after the market close on 2020-10-20. Earnings came in at $1.74 the analyst consensus was $2.13, a difference of $-0.39 per share. Revenue estimates were $6,388M but came in at $6,436M, a difference of $48M. Shares closed the prior day at $525.42 a share and closed the day at $489.05 a decline of -6.9%.
  • Union Pacific Corporation. (UNP) announced earnings after the market close on 2020-10-22. Earnings came in at $2.01 the analyst consensus was $2.03, a difference of $-0.02 per share. Revenue estimates were $4,983M but came in at $4,919M, a difference of $-64M. Shares closed the prior day at $199.48 a share and closed the day at $187.14 a decline of -6.2%.


Dividend Payments

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  • The Week Ahead

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

    • Monday: The Census Bureau reports on sales of new single-family homes for September. The forecast is for a reading similar to August.
    • Tuesday: The Conference Board releases consumer confidence reading for October. The estimate is for a reading of 101.5, just below the reading from September.
    • Wednesday:
    • Thursday: The Bureau of Economic Analysis reports on preliminary Q3 GDP. Economissts are estimating an expansion of 30% compared to a 31.4% contraction in Q2.
    • Friday: The BEA reports Personal Income and Expenditures for September. Economists are looking for a 0.1% increase in income and 1.0% increase in expenditures.

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

    • Monday: Hasbro, HCA Healthcare, SAP
    • Tuesday: Microsoft, BP, Pfizer
    • Wednesday: Amgen, Automatic Data Processing, Boeing
    • Thursday: Activision Blizzard, Molson Coors Beverage
    • Friday: AbbVie, Charter Communications< Colgate-Palmolive

    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.