The news cycle while it hasn't completely died down after the events in Washington DC, but the markets seemed to have settled into trying to see what changes were going to happen in our governance and how that would affect the financial markets. The financial markets were somewhat mixed this week but all three of the major indexes all moving in the same direction, down. Earlier this week we did a story on small business revenue for 2020, and that metric does not make our economy look good right now in spite of the market performance over the last 4 or 5 months.

All 3 major indexes were down for the week ended 2021-01-15. The Dow Jones Industrial average ended the week at 30,814 a decline of 0.9%. The broader S&P 500 index ended the week at 3,768 a decline of 1.5%. The Nasdaq 100 ended the week at 12,804 a decline of 2.3%. The average change for the major averages was down 1.56%.

With the second full week of the year behind us one of the major indexes went negative for the year. The Nasdaq Composite is currently down 0.7% this year. The other 2 major indexes, while still positive edged down. The Dow Jones Industrial ended the week up 0.7% for the year and the S&P 500 ended the week up 0.3% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.5%, with the iShares Dividend price climbing from $99.44 to $100.90.

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 1.7% and mid-cap stocks decreased 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, the value stocks of all 3 capitalization groups outperformed the growth stocks. Large-cap value stocks outperformed large-cap growth stocks 0.1% as compared to -2.7%. Mid-cap value stocks outperformed mid-cap growth stocks 1.7% as compared to -1.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 1.5% as compared to 1.2%.

Sector View

While the major indexes all went down this week, the sector watch was incredibly mixed this week.

After several weeks of getting beat up, the Energy sector lead the way up again this week. The Energy sector increased by 3.68%. The Real Estate sector climbed 1.85% this week and the Utilities sector rose 0.96%. Five of the eleven sectors ended the week up.

Six sectors decreased this past week with the sectors that tend to drive the Nasdaq leading the way down. The Communication Services sector declined 2.94% and the Information Technology sector went down 2.22%. The Consumer Staples sector and Materials sector both went down 1.66%.

Be sure to check our yearly sector charts in the navigation on the right (desktop) or below (on your phone). We will also launch comparison charts in these pages this week (vs S&P 500) and will launch several sector comparison pages as well.



Earnings Roundup

While there were only 51 earnings reports this week, this was the unofficial beginning of earnings season with several major financial companies reporting earnings this week:

  • Citigroup Inc. (C) announced earnings after the market close on 2021-01-15. Earnings came in at $2.07 the analyst consensus was $1.35, a difference of $0.72 per share. Revenue estimates were $16,583M but came in at $16,499M, a difference of $-84M. Shares closed the prior day at $69.01 a share and closed the day at $64.23 a decline of -6.9%.
  • JP Morgan Chase Corporation. (JPM) announced earnings after the market close on 2021-01-15. Earnings came in at $3.79 the analyst consensus was $2.72, a difference of $1.07 per share. Revenue estimates were $29,281M but came in at $29,224M, a difference of $-57M. Shares closed the prior day at $141.17 a share and closed the day at $138.64 a decline of -1.8%.
  • Wells Fargo & Company. (WFC) announced earnings after the market close on 2021-01-15. Earnings came in at $0.64 the analyst consensus was $0.59, a difference of $0.05 per share. Revenue estimates were $18,021M but came in at $17,925M, a difference of $-96M. Shares closed the prior day at $34.75 a share and closed the day at $32.04 a decline of -7.8%.
  • Taiwan Semiconductor. (TSM) announced earnings after the market close on 2021-01-14. Earnings came in at $0.97 the analyst consensus was $0.92, a difference of $0.05 per share. Revenue estimates were $12,899M but came in at $12,676M, a difference of $-223M. Shares closed the prior day at $119.23 a share and closed the day at $126.45 an increase of 6.1%.
  • Blackrock, Inc. (BLK) announced earnings after the market close on 2021-01-14. Earnings came in at $10.18 the analyst consensus was $9.17, a difference of $1.01 per share. Revenue estimates were $4,363M but came in at $4,478M, a difference of $115M. Shares closed the prior day at $779.75 a share and closed the day at $743.50 a decline of -4.6%.
  • Hdfc Bank Limited. (HDB) announced earnings after the market close on 2021-01-15. Earnings came in at $0.00 the analyst consensus was $0.54, a difference of $-0.54 per share. Revenue estimates were $0M but came in at $0M, a difference of $0M. Shares closed the prior day at $75.67 a share and closed the day at $74.88 a decline of -1.0%.
  • Ihs Markit Ltd. (INFO) announced earnings after the market close on 2021-01-13. Earnings came in at $0.72 the analyst consensus was $0.67, a difference of $0.05 per share. Revenue estimates were $1,113M but came in at $1,107M, a difference of $-6M. Shares closed the prior day at $86.78 a share and closed the day at $85.45 a decline of -1.5%.
  • The Pnc Financial. (PNC) announced earnings after the market close on 2021-01-15. Earnings came in at $3.26 the analyst consensus was $2.65, a difference of $0.61 per share. Revenue estimates were $4,142M but came in at $4,208M, a difference of $66M. Shares closed the prior day at $161.50 a share and closed the day at $154.78 a decline of -4.2%.


Dividend Payments

Here are some of the bigger dividends reported this week:

  • Abbvie Inc (ABBV) paid a dividend of $1.30 on 2021-01-14. The stock closed at $111.63 giving an estimated yield of 4.7%.
  • Shaw Communications Inc (SJR) paid a dividend of $0.08 on 2021-01-14. The stock closed at $17.71 giving an estimated yield of 5.3%.
  • Sabine Royalty Trust (SBR) paid a dividend of $0.17 on 2021-01-14. The stock closed at $30.69 giving an estimated yield of 6.5%.
  • Norwood Financial Cp (NWFL) paid a dividend of $0.26 on 2021-01-14. The stock closed at $27.8 giving an estimated yield of 3.7%.

  • The Week Ahead

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

    • Monday: Stock and bond markets are closed for Martin Luther King Day
    • Tuesday:
    • Wednesday: Joseph Biden's inauguration
    • Thursday: the European Central Bank announces their monetary-policy decision. The current deposit rate is set at -0.5% and is not expected to change.
    • Friday: the National Association of Realtors reports on existing home sales for December. The expectation is for a seasonally adjusted decline from 6.7 million homes in November to 6.4 million.

    Earnings season heats up this week with the following companies reporting this week:

    • Monday:
    • Tuesday: Bank of America, Halliburton, Netflix
    • Wednesday: Bank of NY/Mellon, Discover Financial Services, Proctor & Gamble, Morgan Stanley
    • Thursday: Baker-Hughes, CSX, Intel, IBM
    • Friday: Schlumberger, Regions Financial, Kansas City Southern

    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.