All 3 major indexes were up for the week ended 2019-11-08. The Dow Jones Industrial average ended the week at 27,681 an increase of 1.2%. The broader S&P 500 index ended the week at 3,093 an increase of 0.9%. The Nasdaq 100 ended the week at 8,256 an increase of 1.2%. The average change for the major averages was up 1.08%.

All of the major indexes are up year to date with the Dow rising 18.7%, the S&P 500 is up 23.4% and the Nasdaq 100 by 24.4%. 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, but the year-to-date growth has been largely fueled by strong earnings a strong labor market and this weeks' news on the potential for easing of tariffs in the trade war with China.

While a lot of the big names have reported earnings, but this was a very strong week for earnings reports with over 1200 companies reporting earnings. There were a few big names this week that reported earnings including Disney and Uber -- each with different results. The weekly increase in the averages [including several records for the major indexes] was largely driven by good news about the tariff war with China (even though the president might disagree with the potential results.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 0.9%, with the iShares Dividend price climbing from $103.28 to $104.16.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.7% for the week while mid-cap stocks increased by 0.3% and small-cap stocks increased by 0.5%.

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 1.2% as compared to 0.1%. Mid-cap value stocks outperformed mid-cap growth stocks 1.1% as compared to -0.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 1.4% as compared to a slight decrease of around 0%.

Sector View

Almost all of the sectors were positive this week with 8 of the 11 sectors making gains, the other 3 decreasing for the week, with 2 of them declining by over 3%. This was a very strong week for a lot of the sectors with 5 of them increasing by over 1.5% The best performers this week were Financial stocks, Energy and Materials stocks, all increasing over 2%. The Financials increased by 2.33%, Energy stocks increased by 2.29% and Materials by 2.06%. The two very lagging sectors this week were Real Estate, which dropped by 3.78% and Utilities, which dropped by 3.37%. The other sector that declined this week was the Consumer Staples sector, which declined by 0.6%.



Earnings Roundup

A lot of the 'big' names reported earnings last week with 3 of the FAANG stocks reporting. This week had over 1200 earnings reports come out. Some of the key reports were:

  • CVS Health Corporation. (CVS) announced earnings after the market close on 2019-11-06. Earnings came in at $1.84 the analyst consensus was $1.77, a difference of $0.07 per share. Shares closed the prior day at $67.32 a share and closed the day at $70.93 an increase of 5.4%.
  • The Walt Disney Company. (DIS) announced earnings after the market close on 2019-11-07. Earnings came in at $1.07 the analyst consensus was $0.95, a difference of $0.12 per share. Shares closed the prior day at $132.96 a share and closed the day at $137.96 an increase of 3.8%.
  • Duke Energy Corporation. (DUK) announced earnings after the market close on 2019-11-08. Earnings came in at $1.79 the analyst consensus was $1.69, a difference of $0.10 per share. Shares closed the prior day at $92.58 a share and closed the day at $89.95 a decline of -2.8%
  • Qualcomm Incorporated. (QCOM) announced earnings after the market close on 2019-11-06. Earnings came in at $0.78 the analyst consensus was $0.71, a difference of $0.07 per share. Shares closed the prior day at $84.63 a share and closed the day at $89.98 an increase of 6.3%.
  • Activision Blizzard. (ATVI) announced earnings after the market close on 2019-11-07. Earnings came in at $0.32 the analyst consensus was $0.25, a difference of $0.07 per share. Shares closed the prior day at $54.55 a share and closed the day at $54.30 a decline of -0.5%.
  • Humana Inc. (HUM) announced earnings after the market close on 2019-11-06. Earnings came in at $5.03 the analyst consensus was $4.58, a difference of $0.45 per share. Shares closed the prior day at $294.75 a share and closed the day at $304.94 an increase of 3.5%.
  • Marriott International. (MAR) announced earnings after the market close on 2019-11-04. Earnings came in at $1.47 the analyst consensus was $1.49, a difference of $-0.02 per share. Shares closed the prior day at $130.16 a share and closed the day at $133.69 an increase of 2.7%.
  • Uber Technologies. (UBER) announced earnings after the market close on 2019-11-04. Earnings came in at $-0.68 the analyst consensus was $-0.83, a difference of $0.15 per share. Shares closed the prior day at $31.08 a share and closed the day at $28.02 a decline of -9.8%.


The Week Ahead

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

  • Tuesday: The Small Business Optimism Index for October will be released by The National Federaion of Independent Business.
  • Wednesday: the BLS reports the Consumer Price Index for October with an expectation of a 1.7% YoY increase for core inflation, equal to September.
  • Thursday: the BLS reports the Producer Price Index for October. The economist forecast is for an increase of 1.0%.

The earnings season slows down quite a bit the week with far fewer 'big names' reporting earnings. Some of the key earnings announcements this week are:

  • Monday: Tencent Music Entertainment
  • Tuesday: CBS, Tyson Foods, Advance Auto Parts
  • Wednesday: NetApp, Cisco Systems
  • Thursday: Applied Materials, Walmart
  • Friday: JD.com


Authors Note: Please note, the writer does currently own CVS stock, no other 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.