All 3 major indexes were up for the week ended 2019-11-01. The Dow Jones Industrial average ended the week at 27,347 an increase of 1.4%. The broader S&P 500 index ended the week at 3,067 an increase of 1.5%. The Nasdaq 100 ended the week at 8,161 an increase of 1.6%. The average change for the major averages was up 1.52%

All of the major indexes are up year to date with the Dow rising 17.2%, the S&P 500 is up 22.3% and the Nasdaq 100 by 23.0%. The Dow has been held down this year largely because of the performance of Boeing this year, which is being held down because of the problems with the 737 Max.

We are in the heart of earnings season with 881 earnings reports coming in this week lead by announcements by companies like the FAANG stocks; Apple, Alphabet and Facebook. [More on that below in the earnings section.] Market performance this week was lead by a couple of things outside of overall very good earnings performance. The Fed announced a rate cut this week a quarter point for a third time this year. The target rate is now between 1.5 and 1.75%. In addition, there were two very good employment reports this week with both the ADP and the BLS employment reports both beating expectations. It was anticipated that the GM strike would hurt the report more than it did.

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 $102.71 to $103.28.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.5% for the week while mid-cap stocks increased by 1.5% and small-cap stocks increased by 1.4%.

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 1.6% vs. 1.1%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 0.8% vs. 0.8%. Small-cap growth stocks outperformed Small-cap value stocks this week 2.1% vs. 1.5%.

Sector View

Almost all of the sectors were positive this week with 9 of the 11 sectors making gains, 1 losing ground and 1 ending the week unchanged. The best performing sectors this week were Health, Technology and the Industrials all increasing by more than 2%. Healthcare was up 3.09% for the week, Technology increased 2.17% and the Industrials gained 2.1%. The only sector that ended the week down was the energy sector, which declined 0.32% for the week. This performance is largely due to a strong supply of oil in the world keeping the price of oil low.



Earnings Roundup

This week was a very big earnings week with 881 companies reporting earnings. Some of the key reports were:

  • Apple Inc. (AAPL) announced earnings after the market close on 2019-10-30. Earnings came in at $3.03 the analyst consensus was $2.84, a difference of $0.19 per share. Shares closed the prior day at $243.26 a share and closed the day at $248.76 an increase of 2.3%.
  • Facebook, Inc. (FB) announced earnings after the market close on 2019-10-30. Earnings came in at $2.12 the analyst consensus was $1.91, a difference of $0.21 per share. Shares closed the prior day at $188.25 a share and closed the day at $191.65 an increase of 1.8%.
  • Alphabet Inc. (GOOG) announced earnings after the market close on 2019-10-28. Earnings came in at $10.12 the analyst consensus was $12.57, a difference of $-2.45 per share. Shares closed the prior day at $1,290.00 a share and closed the day at $1,262.62 a decline of -2.1%.
  • GlaxoSmithKline plc. (GSK) announced earnings after the market close on 2019-10-30. Earnings came in at $0.95 the analyst consensus was $0.83, a difference of $0.12 per share. Shares closed the prior day at $44.59 a share and closed the day at $45.64 an increase of 2.4%.
  • Bp P.l.c. (BP) announced earnings after the market close on 2019-10-29. Earnings came in at $0.66 the analyst consensus was $0.53, a difference of $0.13 per share. Shares closed the prior day at $39.24 a share and closed the day at $37.93 a decline of -3.3%.
  • General Motors Inc. (GM) announced earnings after the market close on 2019-10-29. Earnings came in at $1.72 the analyst consensus was $1.18, a difference of $0.54 per share. Shares closed the prior day at $36.64 a share and closed the day at $38.21 an increase of 4.3%.
  • Mastercard Incorporated. (MA) announced earnings after the market close on 2019-10-29. Earnings came in at $2.15 the analyst consensus was $2.01, a difference of $0.14 per share. Shares closed the prior day at $275.93 a share and closed the day at $274.29 a decline of -0.6%.
  • Pfizer Inc. (PFE) announced earnings after the market close on 2019-10-29. Earnings came in at $0.75 the analyst consensus was $0.63, a difference of $0.12 per share. Shares closed the prior day at $37.28 a share and closed the day at $38.21 an increase of 2.5%.
  • Hca Healthcare, Inc. (HCA) announced earnings after the market close on 2019-10-29. Earnings came in at $2.23 the analyst consensus was $2.14, a difference of $0.09 per share. Shares closed the prior day at $126.87 a share and closed the day at $134.99 an increase of 6.4%.
  • The Kraft Heinz Corporation. (KHC) announced earnings after the market close on 2019-10-31. Earnings came in at $0.69 the analyst consensus was $0.53, a difference of $0.16 per share. Shares closed the prior day at $28.50 a share and closed the day at $32.33 an increase of 13.4%.
  • Merck & Co., Inc. (MRK) announced earnings after the market close on 2019-10-29. Earnings came in at $1.51 the analyst consensus was $1.25, a difference of $0.26 per share. Shares closed the prior day at $82.20 a share and closed the day at $85.10 an increase of 3.5%.
  • Starbucks Corporation. (SBUX) announced earnings after the market close on 2019-10-30. Earnings came in at $0.70 the analyst consensus was $0.70, a difference of $0.00 per share. Shares closed the prior day at $84.19 a share and closed the day at $84.56 an increase of 0.4%.


The Week Ahead

There are a number of economic reports that will come out this week including:

  • Tuesday: the BLS reports job openings and labor turnover for September
  • Wednesday: the BLS reports productivity and costs data for the 3rd quarter
  • Thursday: the Bank of England announces their monetary policy decision

The earnings season begins to slow down this week, with a few key earnings reports. This weeks earnings include:

  • Monday: Consolidated Edison, Uber Technologies
  • Tuesday: Becton Dickinson, Emerson Electric
  • Wednesday: CVS Health, Humana, Qualcomm
  • Thursday: Activision Blizzard, Walt Disney
  • Friday: Duke, Honda Motor


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.