All 3 major indexes were up for the week ended 2019-10-11. The Dow Jones Industrial average ended the week at 26,817 an increase of 0.9%. The broader S&P 500 index ended the week at 2,970 an increase of 0.6%. The Nasdaq 100 ended the week at 7,844 an increase of 1.2%. The average change for the major averages was up 0.90%.
All of the major indexes are up year to date with the Dow rising 15.0%, the S&P 500 is up 18.5% and the Nasdaq 100 by 21.4%.
This week, the markets were dominated by Friday's announcement that the US and China were close to a preliminary/partial agreement on trade. As the meeting between the US and China started, the markets were hopeful, and by days' end when the president tweeted about the partial agreement, the markets soared to close Friday significantly higher, which drove the markets for the week.
Investment Style View
If you are a dividend investor, dividend stocks increased in the last week by 0.4%, with the iShares Dividend price climbing from $100.41 to $100.80.
In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 1.2% for the week while large-cap stocks increased by 1.0% and mid-cap stocks increased by 0.7%.
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 0.7% vs. 0.4%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 1.1% vs. 0.6%. Small-cap value stocks outperformed Small-cap growth stocks this week 1.1% vs. 1.0%.
There were more up sectors this past week than down sectors with 7 of the 11 sectors increasing for the week. The best performing sectors this week were those that would stand to benefit from a trade agreement. The Materials sector increased by 1.59%, followed by the Industrials sector, which increased by 1.49% for the week. The third best performer was the Consumer Discretionary sector which increased by 1.26%. The sectors which performed the worst this week were Real Estate, which declined by 1.32% and Consumer Staples, which declined by 0.82% for the week.
This was an extremely light week for earnings announcements with only 2 or 3 dozen announcements all week. Some notable releases for the week ended October 11 were:
- Delta Air Lines. (DAL) announced earnings after the market close on 2019-10-10. Earnings came in at $2.32 the analyst consensus was $2.27, a difference of $0.05 per share. Shares closed the prior day at $53.92 a share and closed the day at $53.10 a decline of -1.5%.
- Domino's Pizza. (DPZ) announced earnings after the market close on 2019-10-08. Earnings came in at $2.05 the analyst consensus was $2.04, a difference of $0.01 per share. Shares closed the prior day at $242.21 a share and closed the day at $253.48 an increase of 4.7%.
- Fastenal Company. (FAST) announced earnings after the market close on 2019-10-11. Earnings came in at $0.37 the analyst consensus was $0.35, a difference of $0.02 per share. Shares closed the prior day at $31.02 a share and closed the day at $36.34 an increase of 17.2%.
- Infosys Limited. (INFY) announced earnings after the market close on 2019-10-11. Earnings came in at $0.13 the analyst consensus was $0.14, a difference of $-0.01 per share. Shares closed the prior day at $11.18 a share and closed the day at $10.97 a decline of -1.9%.
The Week Ahead
There are a number of economic reports that will come out this week including the Census Bureau's release of retail-sales data for September. The consensus estimates according to Barron's are for a gain of 0.3% after the 0.4% rise in August. On Thursday, the Census Bureau will release residential construction data for September, which is expected to come in at an annual rate of 1.35 million permits and 1.3 million starts, which would be 5% lower than August. Finally, on Friday, The Conference Board will release its Leading Economic Index for September. Economists are forecasting a reading of 112.2, which is little changed from both July and August.
There are a few big earnings reports expected for next week including, BlackRock, Johnson & Johnson, UnitedHealth (all on Tuesday), Abbott Labs, Bank of America and US Bancorp (on Wednesday), Honeywell, Phillip Morris, Morgan Stanley (on Thursday) and on Friday, American Express and Coca-Cola report earnings.
Lastly, we will hopefully begin to learn more about the trade-deal to see if there is enough in the deal to push the markets forward, of if it's just another presidential tweet.
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.