All 3 major indexes were down for the week ended 2019-09-20. The Dow Jones Industrial average ended the week at 26,935 a decline of 1.0%. The broader S&P 500 index ended the week at 2,992 a decline of 0.5%. The Nasdaq 100 ended the week at 7,824 a decline of 0.9%. The average change for the major averages was down 0.81%.
All of the major indexes are up year to date with the Dow rising 1.2%, the S&P 500 is up 0.6% and the Nasdaq 100 by 1.1%.
This week was really 'controlled' by a number of factors. First, last Sunday, the attack on the Saudi oil facility with the potential to upset oil markets for several days weight heavily on the markets early in the week. By mid-week, the market turned their attention to what the Federal Reserve was going to do with interest rates. There were a number of economists that were hoping for a drop of 0.5%, but did not get it. The drop of .25% did not really help the markets much. On Friday, the market switched its attention to the trade dispute with China - when a Chinese trade delegation cancelled a tour of farms in Monday. The combination of these 3 factors helped keep the markets down for the week.
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 $103.05 to $102.04. This decline is in line with the decline in the Dow Jones Industrial Average, and greater than the broader S&P 500 Index as well as the Nasdaq Composite.
In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 0.5% for the week while large-cap stocks decreased by 0.6% and small-cap stocks decreased by 1.3%. 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 -0.1% as compared to -0.3%. Mid-cap growth stocks outperformed mid-cap value stocks 0.8% as compared to -0.8%. Finally, Small-cap growth stocks outperformed small-cap value stocks -0.6% as compared to -1.9%.
There were more down sectors this past week than up sectors with 7 of the 11 sectors decreasing for the week. The best performing sectors in the last week would be considered to be a bit more defensive with the Real Estate sector rising 1.33% and the Utilities sector rising 1.13%. Both of these sectors historically are good dividend paying sectors. The laggards for the week were Consumer Discretionary, which declined 2.57% and the Industrials sector which declined 1.79%. After the strike on the Saudi oil facility a week ago, the Energy sector was barely changed for the week, with an increase of 0.09%.
This was a very light week for earnings releases, but there were a few before the earnings season starts up again in 3 weeks.
- Adobe Systems (ADBE) announced earnings after the market close on 9/17. Earnings came in at $2.05 the analyst consensus was $1.97, a difference of $0.08 per share. Shares closed the prior day at $284.69 a share and closed the day at $279.72 a decline of -1.7%.
- Darden Restaurarants. (DRI) announced earnings after the market close on 9/19. Earnings came in at $1.38 the analyst consensus was $1.36, a difference of $0.02 per share. Shares closed the prior day at $127.13 a share and closed the day at $120.68 a decline of -5.1%. Darden owns a number of restaurant chains including the Olive Garden and LongHorn Steakhouse
- Fedex Corporation (FDX) announced earnings after the market close on 9/17. Earnings came in at $3.05 the analyst consensus was $3.17, a difference of $-0.12 per share. Shares closed the prior day at $173.30 a share and closed the day at $150.91 a decline of -12.9%.
- General Mills (GIS) announced earnings after the market close on 9/18. Earnings came in at $0.79 the analyst consensus was $0.77, a difference of $0.02 per share. Shares closed the prior day at $55.03 a share and closed the day at $54.53 a decline of -0.9%.
Next week, we will be adding a section on dividends and dividend investing as we expand our coverage.
The Week Ahead
The last week of the quarter is generally very quiet when it comes to earnings reports, but there are a few companies that will announce this week. On Tuesday, AutoZone, CarMax and Nike all release their financial results and on Thursday, Micron Technology and Conagra will release their latest earnings.
Government [or other] data on tap for this week includes; The Conference Board will release their Consumer Confidence Survey on Tuesday. This release will cover their September survey. The expectation is that the index will come in at 133.3, which is down from Augusts' 135.1. On Friday, the US Census Bureau will release their August advance report of new order for durable goods with an expected decline of 1.2%. The Bureau of Economic Analysis will release their report on Personal Income and Expenses for August. Income is expected to increase by 0.4% after a gain of 0.1% in July and the outlays are expected to increase by 0.3% after an increase of 0.6% in July.
On Thursday, The Conference Board will announce its Leading Economic Index for August. Many on the street are forecasting an increase of 0.1%, after July's +0.5%. Finally, on Friday, The Federal Reserve Board will announce its Financial Accounts of the US for Q2 after the Q1 increase of 4.5%. The expectation is for a much smaller increase since the stock market returned 4.3% in Q2, as compared to the 13.6% increase in Q1.
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.