The major indexes ended the week mixed for the week ended 2019-10-18. The Dow Jones Industrial average ended the week at 26,770 a decline of 0.2%. The broader S&P 500 index ended the week at 2,986 an increase of 0.5%. The Nasdaq 100 ended the week at 7,868 an increase of 0.3%. The average change for the major averages was up 0.23%.

All of the major indexes are up year to date with the Dow rising 14.8%, the S&P 500 is up 19.1% and the Nasdaq 100 by 21.9%.

This week was a bit choppy with the week closing out on a couple of disappointments, particularly news regarding Boeing and what the company did (or did not know) and when regarding the status and issues relating to the 737 and the Max software that has been tied to crashes around the world. There was the potential for some good news from the negotiations between the United Auto Workers Union and General Motors with the potential for a deal that would end the strike at the auto manufacturer.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 0.6%, with the iShares Dividend price climbing from $100.80 to $101.41.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 1.9% for the week while large-cap stocks increased by 0.5% and mid-cap stocks increased by 1.1%.

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 0.4%. Mid-cap value stocks outperformed mid-cap growth stocks 1.2% as compared to -0.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 1.5% as compared to 0.2%.

Sector View

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 Healthcare, the Financials and the Utilities. Healthcare and the Financials performed well this week due to several strong earnings reports that have started this earnings season off on the right foot. The Healthcare sector increased by 2.17%, the Financials by 1.65% and the Utilities sector grew by 1.65%. [more on earnings will follow below.] The sectors which performed the worst this week were Energy and Information Technology, declining by 1.75% and 1.04% respectively.



Earnings Roundup

The beginning of this earnings season started off very strong. We will dedicate a little bit of extra space this week as there was a lot of important activity:

  • Citigroup Inc. (C) announced earnings after the market close on 2019-10-15. Earnings came in at $1.98 the analyst consensus was $1.96, a difference of $0.02 per share. Shares closed the prior day at $70.24 a share and closed the day at $71.22 an increase of 1.4%.
  • The Goldman Sachs. (GS) announced earnings after the market close on 2019-10-15. Earnings came in at $4.79 the analyst consensus was $5.03, a difference of $-0.24 per share. Shares closed the prior day at $205.82 a share and closed the day at $206.46 an increase of 0.3%.
  • Johnson & Johnson. (JNJ) announced earnings after the market close on 2019-10-15. Earnings came in at $2.12 the analyst consensus was $2.00, a difference of $0.12 per share. Shares closed the prior day at $130.72 a share and closed the day at $132.84 an increase of 1.6%
  • Unitedhealth Group. (UNH) announced earnings after the market close on 2019-10-15. Earnings came in at $3.88 the analyst consensus was $3.75, a difference of $0.13 per share. Shares closed the prior day at $220.59 a share and closed the day at $238.59 an increase of 8.2%.
  • Bank Of America. (BAC) announced earnings after the market close on 2019-10-16. Earnings came in at $0.56 the analyst consensus was $0.50, a difference of $0.06 per share. Shares closed the prior day at $29.73 a share and closed the day at $30.17 an increase of 1.5%.
  • J.B. Hunt Transportation. (JBHT) announced earnings after the market close on 2019-10-15. Earnings came in at $1.40 the analyst consensus was $1.44, a difference of $-0.04 per share. Shares closed the prior day at $111.60 a share and closed the day at $115.65 an increase of 3.6%.
  • The Charles Schwab. (SCHW) announced earnings after the market close on 2019-10-15. Earnings came in at $0.74 the analyst consensus was $0.65, a difference of $0.09 per share. Shares closed the prior day at $37.72 a share and closed the day at $39.74 an increase of 5.4%.
  • United Airlines. (UAL) announced earnings after the market close on 2019-10-15. Earnings came in at $4.07 the analyst consensus was $3.94, a difference of $0.13 per share. Shares closed the prior day at $87.88 a share and closed the day at $89.70 an increase of 2.1%.
  • Alcoa Corp. (AA) announced earnings after the market close on 2019-10-16. Earnings came in at $-0.44 the analyst consensus was $-0.35, a difference of $-0.09 per share. Shares closed the prior day at $19.16 a share and closed the day at $20.30 an increase of 5.9%.
  • Abbott Laboratories. (ABT) announced earnings after the market close on 2019-10-16. Earnings came in at $0.84 the analyst consensus was $0.84, a difference of $0.00 per share. Shares closed the prior day at $81.98 a share and closed the day at $81.78 a decline of -0.2%.
  • Csx Corporation. (CSX) announced earnings after the market close on 2019-10-16. Earnings came in at $1.08 the analyst consensus was $1.01, a difference of $0.07 per share. Shares closed the prior day at $69.00 a share and closed the day at $69.78 an increase of 1.1%.
  • Netflix, Inc. (NFLX) announced earnings after the market close on 2019-10-16. Earnings came in at $1.47 the analyst consensus was $1.05, a difference of $0.42 per share. Shares closed the prior day at $286.28 a share and closed the day at $293.35 an increase of 2.5%.


The Week Ahead

There are a number of economic reports that will come out this week including; the European Central Bank (ECB) annoucement of monetary policy on Thursday, the Census Bureau will release its report on Durable Goods for September as well as the new-home sales report, both on Thursday of next week.

The earnings season has a very big week again this week. Another strong earnings week could push markets significantly higher as we hover near records. This weeks earnings include:

  • Monday: TD Ameritrade and Halliburton
  • Tuesday: Chipotle, Lockheed Martin, McDonald's, P&G, UPS
  • Wednesday: Boeing, Caterpillar, Microsoft, Paypal, Tesla
  • Thursday: 3M, Amazon, American Airlines, Northrup Grumman, Twitter, Visa
  • Friday: Anheuser-Busch InBev, Charter Communications, Verizon Communications

Again, we have another


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.