There has been a lot of talk on the financial market news sites and news channels about a coming, small 'reset' as many experts thought that the market had become over extended. This weeks financial news was centered around a series of short squeezes like GameSpot where a lot of hedge funds were forced to cover shorts that they had. This sent stocks like GameSpot on a wild up and ride this week. That's overshadowing, to a degree, a pretty significant across-the-board drop in the major indexes and in all of the sectors. This week's performance dropped 2 of the major indexes to a negative by the close yesterday.

All 3 major indexes were down for the week ended 2021-01-29. The Dow Jones Industrial average ended the week at 29,983 a decline of 3.3%. The broader S&P 500 index ended the week at 3,714 a decline of 3.3%. The Nasdaq 100 ended the week at 12,925 a decline of 3.3%. The average change for the major averages was down 3.29%.

The significant move down this week sent the Dow Jones Industrial Average and the S&P 500 index negative for the year. The Dow is down 2.0% and the S&P is down 1.1% for the year (this compared to the 12/29 close). The Nasdaq Composite is still positive for the year, albeit by only 0.3%.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 3.3%, with the iShares Dividend price declining from $100.02 to $96.72.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 3.4% for the week while mid-cap stocks decreased by 4.3% and small-cap stocks decreased by 3.7%.

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, there was a mixture in performance between growth and value stocks based on the capitalization of the underlying companies. Large-cap growth stocks outperformed large-cap value stocks this week -2.7% vs. -2.9%. Mid-cap value stocks outperformed Mid-cap growth stocks this week -3.4% vs. -4.0%. Small-cap value stocks outperformed Small-cap growth stocks this week -4.3% vs. -5.1%. Analyze small cap growth vs value, mid cap growth vs value, large cap growth vs value over the last year.

Sector View

Every sector was down this week, with an average sector decline of 3.39%. The gap between the biggest sector loss and smallest sector loss was over 5.2%, which is considerable since everything moved in the same direction.

The Energy sector lead the way down this week with a 6.26% decline followed by the Materials and Industrials sectors, down 5.23% and 4.9% respectively.

If you can call them winners, the best performing sectors this week were the Real Estate (-1.05%), Utilities (-1.2%) and the Consumer Staples (-1.21%) sectors.

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

Earnings season is now in full swing with over 500 companies reporting earnings this week. Below are some of the bigger announcements:

  • Apple Inc. (AAPL) announced earnings after the market close on 2021-01-27. Earnings came in at $1.68 the analyst consensus was $1.41, a difference of $0.27 per share. Revenue estimates were $102,513M but came in at $111,439M, a difference of $8,926M. Shares closed the prior day at $142.06 a share and closed the day at $137.09 a decline of -3.5%.
  • Facebook, Inc. (FB) announced earnings after the market close on 2021-01-27. Earnings came in at $3.88 the analyst consensus was $3.24, a difference of $0.64 per share. Revenue estimates were $26,428M but came in at $28,072M, a difference of $1,644M. Shares closed the prior day at $272.14 a share and closed the day at $265.00 a decline of -2.6%.
  • Microsoft Corporation. (MSFT) announced earnings after the market close on 2021-01-26. Earnings came in at $2.03 the analyst consensus was $1.64, a difference of $0.39 per share. Revenue estimates were $40,124M but came in at $43,076M, a difference of $2,952M. Shares closed the prior day at $232.33 a share and closed the day at $232.90 an increase of 0.2%.
  • Tesla, Inc. (TSLA) announced earnings after the market close on 2021-01-27. Earnings came in at $0.80 the analyst consensus was $0.90, a difference of $-0.10 per share. Revenue estimates were $10,129M but came in at $10,744M, a difference of $615M. Shares closed the prior day at $864.16 a share and closed the day at $835.43 a decline of -3.3%.
  • Abbott Laboratories. (ABT) announced earnings after the market close on 2021-01-27. Earnings came in at $1.45 the analyst consensus was $1.36, a difference of $0.09 per share. Revenue estimates were $9,909M but came in at $10,701M, a difference of $792M. Shares closed the prior day at $114.73 a share and closed the day at $114.29 a decline of -0.4%.
  • Mastercard Incorporated. (MA) announced earnings after the market close on 2021-01-28. Earnings came in at $1.64 the analyst consensus was $1.51, a difference of $0.13 per share. Revenue estimates were $3,991M but came in at $4,120M, a difference of $129M. Shares closed the prior day at $315.49 a share and closed the day at $324.28 an increase of 2.8%.
  • Visa Inc. (V) announced earnings after the market close on 2021-01-28. Earnings came in at $1.42 the analyst consensus was $1.27, a difference of $0.15 per share. Revenue estimates were $5,512M but came in at $5,687M, a difference of $175M. Shares closed the prior day at $198.22 a share and closed the day at $193.25 a decline of -2.5%.
  • Verizon Communications. (VZ) announced earnings after the market close on 2021-01-26. Earnings came in at $1.21 the analyst consensus was $1.16, a difference of $0.05 per share. Revenue estimates were $34,444M but came in at $34,692M, a difference of $248M. Shares closed the prior day at $58.42 a share and closed the day at $56.57 a decline of -3.2%.


Dividend Payments

Here are some of the bigger dividends reported this week:

  • Oneok Inc (OKE) paid a dividend of $0.94 on 2021-01-29. The stock closed at $39.83 giving an estimated yield of 9.4%.
  • Clorox Company (CLX) paid a dividend of $1.11 on 2021-01-26. The stock closed at $212.99 giving an estimated yield of 2.1%.
  • Pfizer Inc (PFE) paid a dividend of $0.39 on 2021-01-28. The stock closed at $35.86 giving an estimated yield of 4.4%.
  • Northwest Natural Gas Company (NWN) paid a dividend of $0.48 on 2021-01-28. The stock closed at $44.17 giving an estimated yield of 4.3%.
  • Vornado Realty Trust (VNO) paid a dividend of $0.53 on 2021-01-29. The stock closed at $39.76 giving an estimated yield of 5.3%.

  • The Week Ahead

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

    • Monday: the Census Bureau reports on construction spending for December. The estimate is for an increase of 0.7% ahead of November.
    • Tuesday:
    • Wednesday: ADPs National Employment report comes out for January with an expected increase of 100,000 after Decembers 123,000 decline in private sector payrolls.
    • Thursday: The BLS reports on non-farm productivity and unit labor costs for Q4 2020. Economists are looking for a decline of 4.9% after increasing 4.6% in Q3.
    • Friday: The BLS releases it's jobs report for January with an anticipated rise of 100,000 jobs expected after Decembers' 140,000 decline.

    Earnings season continues this week with the following companies reporting this week:

    • Monday: Thermo Fisher Scientific, Otis Worldwide
    • Tuesday: Alphabet, Amazon, BP, Amgen
    • Wednesday: Biogen, Humana, MetLife, Spotify
    • Thursday: Cigna, Clorox, Ford Motor
    • Friday: Trane Technologies, CBOE Global Markets, Cardinal Health

    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.