All 3 major indexes were down for the week ended 8/23/2019. The Dow Jones Industrial average ended the week at 25,629 a decline of 1.0%. The broader S&P 500 index ended the week at 2,847 a decline of 1.4%. The Nasdaq 100 ended the week at 7,465 a decline of 1.8%. The average change for the major averages was down 1.42%.
All of the major indexes are still up year to date with the Dow rising 1.1%, the S&P 500 is up 1.7% and the Nasdaq 100 by 2.2%.
The market indexes were poised to have the first up week in a month until the trade war took a nasty turn at the end of the week. China increased tariffs on $75 billion worth of goods out of the US and President Trump responded on Friday with a tweet about increasing tariffs on everything China sends to the US.
Investment Style View
If you are a dividend investor, dividend stocks declined in the last week by 1.0%, with the iShares Dividend price declining from $96.69 to $95.77.
In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 1.8% for the week while mid-cap stocks decreased by 1.9% and small-cap stocks decreased by 2.0%. 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, there was a mixture in performance between growth and value stocks based on the capitalization of the underlying companies. Large-cap value stocks outperformed large-cap growth stocks this week -1.5% vs. -1.7%. Mod-cap value stocks outperformed Mid-cap growth stocks this week -0.6% vs. -1.5%. Small-cap growth stocks outperformed Small-cap value stocks this week -2.0% vs. -2.2%.
There were more down sectors this past week than up sectors with 9 of the 11 sectors decreasing for the week. The best performing sector this week was the Consumer Discretionary sector, which ended the week with a gain of 0.16%, followed by Real Estate, which ended the week up 0.05%. The worst performing sector this past week was Materials, down 2.83% followed by Healthcare which ended the week down 2.09%.
It was another slow week for earnings announcements this week with 69 major announcements. Retail had a strong earnings week, which was overshadowed and largely muted by the escalating trade war with China.
- Target (TGT) announced earnings after the market close on 2019-08-21. Earnings came in at $1.82 the analyst consensus was $1.62, a difference of $0.20 per share. Shares closed the prior day at $85.53 a share and closed the day at $103.00 an increase of 20.4%.
- Lowe's (LOW) announced earnings after the market close on 2019-08-21. Earnings came in at $2.15 the analyst consensus was $2.00, a difference of $0.15 per share. Shares closed the prior day at $97.87 a share and closed the day at $108.00 an increase of 10.4%.
- Nordstrom (JWN) announced earnings after the market close on 2019-08-21. Earnings came in at $0.90 the analyst consensus was $0.77, a difference of $0.13 per share. Shares closed the prior day at $26.54 a share and closed the day at $30.75 an increase of 15.9%.
- Kohl's (KSS) announced earnings after the market close on 2019-08-20. Earnings came in at $1.55 the analyst consensus was $1.53, a difference of $0.02 per share. Shares closed the prior day at $48.20 a share and closed the day at $44.88 a decline of -6.9%.
The Week Ahead
There is little doubt that the trade war will have a significant impact on the market, at least in the first half of the week. It's also the last week of the summer with many on Wall Street (at least the NY portion) heading out to the last full week of Hamptons' summertime festivities before Labor Day unofficially closes things down.
For the week of August 26th will be influenced by the Census Bureau's release of Durable Goods for July on Monday. The consensus calls for a 1.1% increase in new orders for manufactured durables, down from the 1.9% increase in June. Another closely watched survey, the Case-Shiller US National Home Price Index will be released for June, on Tuesday, with home price gains anticipated to continue its slowing trend.
The week will close out on Thursday and Friday with the Bureau of Economic Analysis releasing its revised estimate for second quarter GDP (previously reported at up 2.1%) and it's Personal Income and Outlays report for July on Friday. Personal income is expected to rise 0.3%, spending to increase 0.5% compared to June's 0.4% and 0.3% increases.
Authors Note: No stocks discussed in this article are currently owned by the writer.
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.