All 3 major indexes were up for the week ended 2019-10-25. The Dow Jones Industrial average ended the week at 26,958 an increase of 0.7%. The broader S&P 500 index ended the week at 3,023 an increase of 1.2%. The Nasdaq 100 ended the week at 8,029 an increase of 2.0%. The average change for the major averages was up 1.32%.

All of the major indexes are up year to date with the Dow rising 15.6%, the S&P 500 is up 20.6.1% and the Nasdaq 100 by 21.0%.

We are in the heart of earnings season with nearly 570 earnings reports coming in this week lead by announcements by companies like Amazon, Twitter and Microsoft. [More on that below in the earnings section.] The week ended with a cryptic announcement that a first round trade deal with China is imminent. This, as has been the case over the last several months was a main driver of the markets, particularly by weeks' end. Amazon did affect the markets with their earnings release which fell short of expectations and gave guidance for a soft Q4.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.3%, with the iShares Dividend price climbing from $101.41 to $102.71.

In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 1.4% for the week while large-cap stocks increased by 1.3% and mid-cap stocks increased by 0.9%.

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 1.7% vs. 0.6%. Mid-cap growth stocks outperformed Mid-cap value stocks this week 1.2% vs. 0.9%. Small-cap value stocks outperformed Small-cap growth stocks this week 1.8% vs. 1.1%.

Sector View

Nine of the 11 sectors were up this past week, with very strong performance from the leading sectors. The best performing sectors this week were Energy, which increased 4.37%, Information Technology, which increased 2.55%, followed by Industrials and the Financial sector which increased 1.87% and 1.74% respectively. The two lagging sectors for the week were the Utilities sector, which declined by 0.46% and the Consumer Discretionary sector which declined by 0.15%.



Earnings Roundup

This week and next are the major weeks for earnings season. There were nearly 570 earnings reports that came out this week, with some very major companies reporting earnings this week:

  • Amazon.com, Inc. (AMZN) announced earnings after the market close on 2019-10-24. Earnings came in at $4.23 the analyst consensus was $4.46, a difference of $-0.23 per share. Shares closed the prior day at $1,780.78 a share and closed the day at $1,761.33 a decline of -1.1%.
  • Intel Corporation (INTC) announced earnings after the market close on 2019-10-24. Earnings came in at $1.42 the analyst consensus was $1.24, a difference of $0.18 per share. Shares closed the prior day at $52.23 a share and closed the day at $56.46 an increase of 8.1%.
  • Microsoft Corporation (MSFT) announced earnings after the market close on 2019-10-23. Earnings came in at $1.38 the analyst consensus was $1.25, a difference of $0.13 per share. Shares closed the prior day at $137.24 a share and closed the day at $139.94 an increase of 2.0%.
  • Twitter, Inc. (TWTR) announced earnings after the market close on 2019-10-24. Earnings came in at $0.17 the analyst consensus was $0.20, a difference of $-0.03 per share. Shares closed the prior day at $38.83 a share and closed the day at $30.75 a decline of -20.8%.
  • The Boeing Company. (BA) announced earnings after the market close on 2019-10-23. Earnings came in at $1.45 the analyst consensus was $2.04, a difference of $-0.59 per share. Shares closed the prior day at $337.00 a share and closed the day at $340.50 an increase of 1.0%.
  • Mcdonald's Corporation. (MCD) announced earnings after the market close on 2019-10-22. Earnings came in at $2.11 the analyst consensus was $2.20, a difference of $-0.09 per share. Shares closed the prior day at $209.85 a share and closed the day at $199.27 a decline of -5.0%.
  • Procter & Gamble. (PG) announced earnings after the market close on 2019-10-22. Earnings came in at $1.37 the analyst consensus was $1.24, a difference of $0.13 per share. Shares closed the prior day at $119.08 a share and closed the day at $122.18 an increase of 2.6%.
  • Visa Inc. (V) announced earnings after the market close on 2019-10-24. Earnings came in at $1.47 the analyst consensus was $1.43, a difference of $0.04 per share. Shares closed the prior day at $176.16 a share and closed the day at $177.85 an increase of 1.0%.
  • Eli Lilly And Company. (LLY) announced earnings after the market close on 2019-10-23. Earnings came in at $1.48 the analyst consensus was $1.43, a difference of $0.05 per share. Shares closed the prior day at $109.84 a share and closed the day at $107.40 a decline of -2.2%.
  • Northrop Grumman. (NOC) announced earnings after the market close on 2019-10-24. Earnings came in at $5.49 the analyst consensus was $4.74, a difference of $0.75 per share. Shares closed the prior day at $353.20 a share and closed the day at $356.91 an increase of 1.1%.
  • Paypal Holdings. (PYPL) announced earnings after the market close on 2019-10-23. Earnings came in at $0.61 the analyst consensus was $0.52, a difference of $0.09 per share. Shares closed the prior day at $96.64 a share and closed the day at $104.91 an increase of 8.6%.
  • United Parcel Service. (UPS) announced earnings after the market close on 2019-10-22. Earnings came in at $2.07 the analyst consensus was $2.06, a difference of $0.01 per share. Shares closed the prior day at $118.52 a share and closed the day at $116.10 a decline of -2.0%.


The Week Ahead

There are a number of economic reports that will come out this week including; ADP will release its National Employment Report for October on Wednesday with the current expectation to be an increase of 130,000 workers after the increase of 135,000 in Spetember, The Conference Board releases their Consumer Confidence Index for October on Tuesday, the Bank of Japan monetary-policy announcement on Thursday and the Bureau of Labor Statistics reporting their jobs report on Friday.

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: Alphabet (Google), AT&T, Spotify
  • Tuesday: AMD, BP, General Motors
  • Wednesday: Apple, ADP, Facebook
  • Thursday: Squibb, DuPont, Kraft Heinz
  • Friday: Alibaba Group, AIG, Exxon Mobil


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.