There was another questionable jobs report where initial unemployment claims were higher than usual, the business network talking heads were all talking about whether they thought the multiples in the market are justified or whether a pullback would be coming soon. Whenever prices are at or near the top, everyone starts talking and worrying about a move down. Some late week downward 'pressure' came during the Walmart earnings call where they warned about the future without more stimulus from the government. This coming week will help us determine which direction things are going and where to look for opportunities.

The major indexes ended the week mixed for the week ended 2021-02-19. The Dow Jones Industrial average ended the week at 31,494 an increase of 0.1%. The broader S&P 500 index ended the week at 3,907 a decline of 0.7%. The Nasdaq 100 ended the week at 13,581 a decline of 1.6%. The average change for the major averages was down 0.75%.

With a mixture of returns for the week, we've had some YTD shifting, but all of the major indexes are positive for the year and are still in the same 'order' as they have been. The Dow Jones Industrial is up 2.9% for the year, the S&P500 is now up 4.0% for the year and the Nasdaq is up 5.4% for the year, down from last week.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 2.2%, with the iShares Dividend price climbing from $103.26 to $105.53.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 0.4% for the week while large-cap stocks decreased by 1.2% and small-cap stocks decreased by 0.5%.

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 0.6% as compared to -2.1%. Mid-cap value stocks outperformed mid-cap growth stocks 1.9% as compared to -1.4%. Finally, Small-cap value stocks outperformed small-cap growth stocks 1.0% as compared to -2.4%.

Sector View

This week was a mixture of sector performance with 4 sectors increasing and 7 declining.

Four sectors moved up this week. Things were lead again by the Energy sector with an increase of 3.14%, followed by the Financial sector (+2.49%), the Materials sector (+0.79%) and the Industrial sector (+0.2%). The weather in particular helped the Energy sector climb with significant demand increasing because of the freeze in Texas, which has significant oil refining and processing operations which were impacted by the weather this week.

The Healthcare sector lead the decliners this week with a drop of 2.6%. The Information Technology, Utilies and Consumer Staples sectors all declined more than one percent at -1.84%, -1.62 and -1.32% respectively.

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

Over 500 companies reported earnings in the latest week with several major corporations reporting:

  • Applied Materials Corporation. (AMAT) announced earnings after the market close on 2021-02-18. Earnings came in at $1.39 the analyst consensus was $1.27, a difference of $0.12 per share. Revenue estimates were $4,983M but came in at $5,162M, a difference of $179M. Shares closed the prior day at $113.43 a share and closed the day at $119.46 an increase of 5.3%.
  • Baidu, Inc. (BIDU) announced earnings after the market close on 2021-02-17. Earnings came in at $3.08 the analyst consensus was $2.51, a difference of $0.57 per share. Revenue estimates were $4,455M but came in at $4,638M, a difference of $183M. Shares closed the prior day at $308.68 a share and closed the day at $298.01 a decline of -3.5%.
  • Shopify Inc. (SHOP) announced earnings after the market close on 2021-02-17. Earnings came in at $1.58 the analyst consensus was $1.21, a difference of $0.37 per share. Revenue estimates were $907M but came in at $978M, a difference of $71M. Shares closed the prior day at $1,474.00 a share and closed the day at $1,425.00 a decline of -3.3%.
  • Walmart Inc. (WMT) announced earnings after the market close on 2021-02-18. Earnings came in at $1.39 the analyst consensus was $1.51, a difference of $-0.12 per share. Revenue estimates were $148,519M but came in at $152,079M, a difference of $3,560M. Shares closed the prior day at $147.20 a share and closed the day at $137.66 a decline of -6.5%.


Dividend Payments

Here are some of the bigger dividends reported this week:

  • Glaxosmithkline Plc (GSK) paid a dividend of $0.62 on 2021-02-18. The stock closed at $34.7 giving an estimated yield of 7.2%.
  • BP Plc (BP) paid a dividend of $0.31 on 2021-02-18. The stock closed at $22.46 giving an estimated yield of 5.5%.
  • Macerich Company (MAC) paid a dividend of $0.15 on 2021-02-18. The stock closed at $12.45 giving an estimated yield of 4.8%.
  • Marathon Petroleum Corp (MPC) paid a dividend of $0.58 on 2021-02-16. The stock closed at $51.46 giving an estimated yield of 4.5%.

  • International Markets

    Below are moves in overseas markets this week:

  • Nikkei: +1.7% for the week, +9.4% YTD
  • Shanghai: +1.1%, +6.45%
  • DAX: -0.3%, +2.0%
  • FTSE: +0.5%, +1.0%
  • CAC: +1.2%, +4.0%
  • The Week Ahead

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

    • Monday: The Conference Board releases its leading economic indicator report for January with an expected 0.3% increase, the same as December.
    • Tuesday:
    • Wednesday: The Census Bureau reports on new home sales for January with a seasonally 850K expected, slightly higher than December.
    • Thursday: The National Association of Realtors releases its pending home sales index for January with an expectation of a 1.5% decline after 4 months of gains.
    • Friday: The BEA reports on personal income and spending with an expected income gain of 9.9% and spending rising by 2.3% in January.

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

    • Monday: Ingersoll Rand, SBA Communications
    • Tuesday: Home Depot, Intuit, Medtronic
    • Wednesday: Lowe's, NetApp, TJX Cos
    • Thursday: Best Buy, Anheuser-Busch InBev, VMWare
    • Friday: DraftKings, Public Enterprise Group, Liberty Media

    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.