Inauguration week saw the 3 major market indexes climb while many experts on CNBCs Fast Money Halftime Report on Friday were all looking for a pullback on prices. I don't have a crystal ball to say "X WILL HAPPEN NEXT WEEK", if I did, i'd probably be a real-life Ax Capital market mover. But I'm not. I just have a feeling that these experts are right and I'm personally a little uncofortable where some valuations have gone.

All 3 major indexes were up for the week ended 2021-01-22. The Dow Jones Industrial average ended the week at 30,997 an increase of 0.6%. The broader S&P 500 index ended the week at 3,841 an increase of 1.9%. The Nasdaq 100 ended the week at 13,366 an increase of 4.4%. The average change for the major averages was up 2.31%.

As we move into earnings season and as the new administration/congress settles into the White House and Washington with all three major indexes increasing this shortened week the year-to-date figures also increased. The lagging Dow Jones Industraial Average is now up 1.3% for the year, the S&P 500 is up 2.3% for the year and the Nasdaq Composite is now up 3.7% for the year.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.9%, with the iShares Dividend price declining from $100.90 to $100.02.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 2.2% for the week while mid-cap stocks increased by 1.0% and small-cap stocks increased by 1.0%

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 3.4% as compared to -0.8%. Mid-cap growth stocks outperformed mid-cap value stocks 1.8% as compared to -0.7%. Finally, Small-cap growth stocks outperformed small-cap value stocks 3.2% as compared to 0.1%.

Sector View

The sector view on the market was very mixed this week. Five of the sectors declined an average of 1.13% and six sectors climbed an average of 2.45% with a nearly 7% spread between the biggest gaining sector and biggest losing sector for the week.

After several weeks on top, the Energy sector led the way down this week, declining 1.82%. Energhy was followed by the Financial sector (-1.69%) and the Materials sector (-1.13%).

Leading the way up were the sectors that have been pushing the Nasdaq up since last year, Communication Services sector (+5.05%), the Information Techology sector (+4.12%) followed by the Consumer Discretionary sector (+2.86%) and the Real Estate sector (+1.31%).

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

We got a little deeper into earnings season this week with 139 companies reporting earnings. Below are some of the highlights:

  • Intel Corporatiion. (INTC) announced earnings after the market close on 2021-01-21. Earnings came in at $1.52 the analyst consensus was $1.10, a difference of $0.42 per share. Revenue estimates were $17,470M but came in at $19,978M, a difference of $2,508M. Shares closed the prior day at $58.67 a share and closed the day at $62.46 an increase of 6.5%.
  • Morgan Stanley (MS) announced earnings after the market close on 2021-01-20. Earnings came in at $1.92 the analyst consensus was $1.29, a difference of $0.63 per share. Revenue estimates were $11,278M but came in at $13,640M, a difference of $2,362M. Shares closed the prior day at $74.99 a share and closed the day at $74.84 a decline of -0.2%.
  • Procter & Gamble Company. (PG) announced earnings after the market close on 2021-01-20. Earnings came in at $1.64 the analyst consensus was $1.51, a difference of $0.13 per share. Revenue estimates were $19,149M but came in at $19,745M, a difference of $596M. Shares closed the prior day at $133.60 a share and closed the day at $131.93 a decline of -1.2%.
  • Unitedhealth Group. (UNH) announced earnings after the market close on 2021-01-20. Earnings came in at $2.52 the analyst consensus was $2.39, a difference of $0.13 per share. Revenue estimates were $65,069M but came in at $65,467M, a difference of $398M. Shares closed the prior day at $352.19 a share and closed the day at $350.84 a decline of -0.4%.
  • Csx Corporation. (CSX) announced earnings after the market close on 2021-01-21. Earnings came in at $1.04 the analyst consensus was $1.00, a difference of $0.04 per share. Revenue estimates were $2,748M but came in at $2,825M, a difference of $77M. Shares closed the prior day at $91.61 a share and closed the day at $87.64 a decline of -4.3%.
  • International Business Machines. (IBM) announced earnings after the market close on 2021-01-21. Earnings came in at $2.07 the analyst consensus was $1.78, a difference of $0.29 per share. Revenue estimates were $20,593M but came in at $20,367M, a difference of $-226M. Shares closed the prior day at $131.65 a share and closed the day at $118.61 a decline of -9.9%.


Dividend Payments

Here are some of the bigger dividends reported this week:

  • Costamare Inc (CMRE) paid a dividend of $0.10 on 2021-01-19. The stock closed at $8.71 giving an estimated yield of 4.6%.
  • Procter & Gamble Company (PG) paid a dividend of $0.79 on 2021-01-21. The stock closed at $131.01 giving an estimated yield of 2.4%.
  • Colgate-Palmolive Company (CL) paid a dividend of $0.44 on 2021-01-22. The stock closed at $78.19 giving an estimated yield of 2.3%.
  • Quest Diagnostics Inc (DGX) paid a dividend of $0.56 on 2021-01-19. The stock closed at $125.99 giving an estimated yield of 1.8%.

  • The Week Ahead

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

    • Monday: The Federal Reserve Bank of Chicago releases its National Activity index for December.
    • Tuesday: The Conference Board releases its Consumer Confidence index for January anticipating a 91.6 reading, 3 points higher than December.
    • Wednesday: The Federal Open Market Committee reports their monetary policy decision. The anticipation is for the central bank to keep rates near 0%.
    • Thursday: The Bureau of Economic Analysis reports on Q4 GDP. The concensus estimates are looking for an increase of 4.3% after Q3s record 33.4% increase.
    • Friday: The BEA reports on personal income and spending for December. Economists are expecting a decline of 0.1% compared to Novembers' income decline of 1.1% and spending decline of 0.4%

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

    • Monday: Kimberly-Clark, Philips
    • Tuesday: 3M, Advanced Micro Devices, American Express, Starbucks
    • Wednesday: Abbott Labs, Anthem, Boeing
    • Thursday: Altria, Northrop-Grumman, Visa
    • Friday: Caterpillar, Charter Communications, Chevron

    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.