All 3 major indexes were down for the week ended 2019-11-22. The Dow Jones Industrial average ended the week at 27,876 a decline of 0.5%. The broader S&P 500 index ended the week at 3,110 a decline of 0.3%. The Nasdaq 100 ended the week at 8,272 a decline of 0.5%. The average change for the major averages was down 0.44%.

With declines in all 3 major indexes this week, all 3 moved below their records. The major indexes are all well ahead of where they started the year with the Dow up 19.5%, S&P500 up 24.1% and the Nasdaq 100 rising 24.7% year-to-date.

The big market mover for the week was, as has been the norm, the trade tensions with China. There were rumblings early in the week that the 'phase one' deal was potentially not going to happen, closely followed by word that they were close by the end of the week. On the earnings front, the number of earnings releases was under 100 so things will be much quieter as we head into the end of the year, but there were a few retail earnings announcements this week that did have a little impact. More on that below.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.6%, with the iShares Dividend price declining from $103.96 to $103.32.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 0.4% for the week while large-cap stocks decreased by 0.7% and small-cap stocks decreased by 1.0%.

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 growth stocks of all 3 capitalization groups outperformed the value stocks. Large-cap growth stocks outperformed large-cap value stocks 0.2% as compared to 0.1%. Mid-cap growth stocks outperformed mid-cap value stocks 0.8% as compared to -0.6%. Finally, Small-cap growth stocks outperformed small-cap value stocks 0.4% as compared to -0.8%.

Sector View

As in most weeks where the major indexes all trend down, 9 of the 11 sectors declined this week with only 2 rising. The two sectors showing gains this week were the Financial sector, which increased by 0.47% and the Real Estate sector which increased by 0.29%. The financial sector was helped by the news that Charles Schwab was looking to acquire TD Ameritrade in a consolidation within the brokerage business following the trend towards no-fee stock trading. The nine remaining sectors showing declines were 'lead' by the Materials sector, which declined by 1.63% on the week, the Utilities sector, which declined by 1.16% and the Healthcare sector which declined by 1.13% on the week.



Earnings Roundup

For the remainder of the year, the earnings announcements will far fewer than in the meat of earnings seasons. This week there were 85 earnings announcemnents, lead by several retailers. There's a noticable trend in retail where the discount retail chains like Walmart, Costco and Target and all performing fairly well but the higher-end retailers like Macy's and Kohl's have been performing less well:

  • The Home Depot, Inc. (HD) announced earnings after the market close on 2019-11-19. Earnings came in at $2.53 the analyst consensus was $2.53, a difference of $0.00 per share. Shares closed the prior day at $238.85 a share and closed the day at $225.86 a decline of -5.4%.
  • Macy's, Inc. (M) announced earnings after the market close on 2019-11-21. Earnings came in at $0.07 the analyst consensus was $0.01, a difference of $0.06 per share. Shares closed the prior day at $15.02 a share and closed the day at $14.67 a decline of -2.3%.
  • Target Corporation. (TGT) announced earnings after the market close on 2019-11-20. Earnings came in at $1.36 the analyst consensus was $1.19, a difference of $0.17 per share. Shares closed the prior day at $110.85 a share and closed the day at $126.43 an increase of 14.1%.
  • The Tjx Companies. (TJX) announced earnings after the market close on 2019-11-19. Earnings came in at $0.68 the analyst consensus was $0.66, a difference of $0.02 per share. Shares closed the prior day at $59.55 a share and closed the day at $60.64 an increase of 1.8%.
  • Foot Locker, Inc. (FL) announced earnings after the market close on 2019-11-22. Earnings came in at $1.13 the analyst consensus was $1.07, a difference of $0.06 per share. Shares closed the prior day at $41.46 a share and closed the day at $40.25 a decline of -2.9%.
  • Intuit Inc. (INTU) announced earnings after the market close on 2019-11-21. Earnings came in at $0.41 the analyst consensus was $0.26, a difference of $0.15 per share. Shares closed the prior day at $271.15 a share and closed the day at $259.81 a decline of -4.2%.
  • Kohl's Corporation. (KSS) announced earnings after the market close on 2019-11-19. Earnings came in at $0.74 the analyst consensus was $0.85, a difference of $-0.11 per share. Shares closed the prior day at $58.40 a share and closed the day at $47.02 a decline of -19.5%.
  • Lowe's Companies. (LOW) announced earnings after the market close on 2019-11-20. Earnings came in at $1.41 the analyst consensus was $1.35, a difference of $0.06 per share. Shares closed the prior day at $113.40 a share and closed the day at $117.83 an increase of 3.9%.


The Week Ahead

There will be a much lighter 'announcement' week this week with the markets closed on Thursday for Thanksgiving and a shortened session on Friday:

  • Monday: The Chicago Federal Reserve releases its National Activity Index for October.
  • Tuesday: The Conference Board releases its Consumer Confidence Survy for November. The Census Bureau releases sales of new single-family homes for October.
  • Wednesday: The Federal Reserve issues its beige book report summarizing economic activity. The Census Bureau releases its Durable Goods report for October.
  • Thursday: HOLIDAY
  • Friday:

The earnings season continues to slow, particularly with the holidays approaching. Some of this weeks earnings reports to look for:

  • Monday: Conference Calls - Hewlett Packard Enterprise, Agilent Technologies
  • Tuesday: Conference Calls - Box, Best BUy, Dick's Sporting Goods, Dollar Tree
  • Wednesday: Webcast - Deere
  • Thursday: HOLIDAY
  • Friday: Go Shopping Today

As we approach the new year, we will begin including dividend information in our report next week. The data has been loaded into our database and we have been working up how we will be reporting on them.


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.