The election is finally over, nearly 1500 companies reported earnings this past week and all is well in the world. Well, not so fast. The financial markets reacted to a non-democratic wave overtaking Washington with a nice little rally this week, even though it's not really decided. The house remains in Democratic hands (likely), the Senate right now is split with 2 runoffs coming in January and 2 yet-to-be-determined races and although the presidency appears to be in Biden's hands, we don't really know. So the markets appear to be relieved right now that we are not turning into socialists, at least not yet.

All 3 major indexes were up for the week ended 2020-11-06. The Dow Jones Industrial average ended the week at 28,323 an increase of 6.9%. The broader S&P 500 index ended the week at 3,509 an increase of 7.3%. The Nasdaq 100 ended the week at 12,091 an increase of 9.4%. The average change for the major averages was up 7.86%.

After such a strong week all of the major indexes moved up this past week. The Dow Jones Industrials are still down for the year at -0.8% but the other two averages are vey positive. The S&P 500 is now up 8.6% for the year and the Nasdaq Composite is down 34.8% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 2.9%, with the iShares Dividend price climbing from $83.00 to $85.42.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks increased by 7.5% for the week while large-cap stocks increased by 7.4% and small-cap stocks increased by 6.0%.

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 9.6% as compared to 5.0%. Mid-cap growth stocks outperformed mid-cap value stocks 10.5% as compared to 5.0%. Finally, Small-cap growth stocks outperformed small-cap value stocks 8.3% as compared to 4.8%.

Sector View

This week was almost a complete opposite of last week. Last week every sector was down with 4 sectors down over 5.5%. This past week every sector was up -- the exception to the "party time" pops was the energy sector.

The Energy sector had a very muted gain this week, with a democratic congress and the possibility of a Biden presidency becoming clearer by the end of the week. The Energy sector gained, but gained only 0.8% for the week.

The other 10 sectors were decidedly up this week with all of the other sectors up an average of over 6.5%. The biggest gains came from the Information Technology sector at +9.8%, Communication Services at +8.34% and Consumer Discretionary at +8.17%.



Earnings Roundup

As stated above, there were a ton of earnings releases this week with Zacks showing over 1450 earnings releases this week. Some of the bigger ones that you likely missed:

  • Astrazeneca Plc. (AZN) announced earnings after the market close on 2020-11-05. Earnings came in at $0.47 the analyst consensus was $0.49, a difference of $-0.02 per share. Revenue estimates were $6,542M but came in at $6,578M, a difference of $37M. Shares closed the prior day at $55.04 a share and closed the day at $55.16 an increase of 0.2%.
  • Bristol Myers Squibb. (BMY) announced earnings after the market close on 2020-11-05. Earnings came in at $1.63 the analyst consensus was $1.49, a difference of $0.14 per share. Revenue estimates were $10,358M but came in at $10,540M, a difference of $182M. Shares closed the prior day at $65.43 a share and closed the day at $63.75 a decline of -2.6%.
  • Paypal Holdings Corporation. (PYPL) announced earnings after the market close on 2020-11-02. Earnings came in at $1.07 the analyst consensus was $0.94, a difference of $0.13 per share. Revenue estimates were $5,401M but came in at $5,459M, a difference of $58M. Shares closed the prior day at $187.76 a share and closed the day at $179.81 a decline of -4.2%.
  • Qualcomm Incorporated. (QCOM) announced earnings after the market close on 2020-11-04. Earnings came in at $1.45 the analyst consensus was $1.19, a difference of $0.26 per share. Revenue estimates were $5,935M but came in at $8,346M, a difference of $2,411M. Shares closed the prior day at $128.97 a share and closed the day at $145.41 an increase of 12.7%.
  • Cigna Corporation. (CI) announced earnings after the market close on 2020-11-05. Earnings came in at $4.41 the analyst consensus was $4.25, a difference of $0.16 per share. Revenue estimates were $39,138M but came in at $40,801M, a difference of $1,663M. Shares closed the prior day at $210.62 a share and closed the day at $214.16 an increase of 1.7%.
  • Cvs Health Corporation. (CVS) announced earnings after the market close on 2020-11-06. Earnings came in at $1.66 the analyst consensus was $1.34, a difference of $0.32 per share. Revenue estimates were $66,536M but came in at $67,056M, a difference of $520M. Shares closed the prior day at $61.41 a share and closed the day at $64.95 an increase of 5.8%.
  • Square, Inc. (SQ) announced earnings after the market close on 2020-11-05. Earnings came in at $0.34 the analyst consensus was $0.14, a difference of $0.20 per share. Revenue estimates were $2,148M but came in at $3,034M, a difference of $886M. Shares closed the prior day at $175.23 a share and closed the day at $198.08 an increase of 13.0%.
  • Uber Technologies. (UBER) announced earnings after the market close on 2020-11-05. Earnings came in at $-0.62 the analyst consensus was $-0.60, a difference of $-0.02 per share. Revenue estimates were $3,144M but came in at $3,129M, a difference of $-15M. Shares closed the prior day at $41.96 a share and closed the day at $44.87 an increase of 6.9%.


Dividend Payments

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  • The Week Ahead

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

    • Monday: The Federal Reserve Bank of Piladelphia hosts a 2-day FinTech conference.
    • Tuesday: The Bureau of Labor Statistics releases its report on Job Openings and Labor Turnover for September with expectations for little change compared to August.
    • Wednesday: Veterans Day keeps the Bond market closed.
    • Thursday: The BLS reports on the Consumer Price Index for October with an expected increase of 1.3% as compared to a year ago.
    • Friday: The BLS reports on the Producer Price Index for October with an expected increase of 0.2%.

    Earnings season continues this week with the following releases to watch:

    • Monday: Beyond Meat, Canopy Growth, Aurora Cannabis, McDonalds
    • Tuesday: Lyft, Adidas, DR Horton
    • Wednesday: Fossil Group, Vroom
    • Thursday: Walt Disney, Seimens, Applied Materials
    • Friday: DraftKings

    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.