In spite of the large jump in the indexes on Friday, the major indexes ended the week mixed for the week ended 2019-12-06. The Dow Jones Industrial average ended the week at 28,015 a decline of 0.1%. The broader S&P 500 index ended the week at 3,146 an increase of 0.2%. The Nasdaq 100 ended the week at 8,397 a decline of 0.1%. The average change for the major averages was down 0.02%.
Barring a shock to the market, we are likely to have a very strong market return for the year, all of the major averages are up over 20% year-to-date. The Dow Jones Industrial Average is up 20.1%, the S&P 500 is up 25.5% and the Nasdaq is leading the pack at 26.6% up for the year.
While this was a very slow earnings week, the market was up and down this week initially dominated by worries that a trade deal with China would not happen, based on comments from the President at and before a NATO summit, but the week closed out on an extremely strong jobs report illustrating that there hasn't been a slow down. The November jobs report came in much stronger than expected and the October numbers were revised up.
Investment Style View
If you are a dividend investor, dividend stocks increased in the last week by 0.1%, with the iShares Dividend price climbing from $103.74 to $103.87. See below for more on dividends.
In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 0.5% for the week while large-cap stocks increased by 0.2% and mid-cap stocks decreased by 0.1%.
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 0.3% as compared to -0.1%. Mid-cap value stocks outperformed mid-cap growth stocks 0.4% as compared to -0.3%. Finally, Small-cap value stocks outperformed small-cap growth stocks 1.0% as compared to -0.6%.
While we ended the week very strong, the week was actually a bit of a mixture with 7 of the market sectors increasing this week and 4 sectors declining. The leading sectors this week were Energy, which increased 1.74% and the Consumer Staples sector increasing 1.14%. Healthcare and the Financial sectors also performed well with increases of 0.79% and 0.69% respectively. Of the four declining sectors, 3 of them were fairly large with the Industrials declining 0.71%, Technology dropping 0.57% and Consumer Discretionary declining 0.47% on the week.
The Consumer Staples sector has a great year-to-date trend.
There were only 78 earnings reports this week with only a few big names reporting:
- Salesforce.com, Corporation. (CRM) announced earnings after the market close on 2019-12-03. Earnings came in at $0.75 the analyst consensus was $0.66, a difference of $0.09 per share. Shares closed the prior day at $161.57 a share and closed the day at $156.43 a decline of -3.2%.
- Campbell Soup Company. (CPB) announced earnings after the market close on 2019-12-04. Earnings came in at $0.78 the analyst consensus was $0.69, a difference of $0.09 per share. Shares closed the prior day at $47.58 a share and closed the day at $48.47 an increase of 1.9%.
- Dollar General. (DG) announced earnings after the market close on 2019-12-05. Earnings came in at $1.42 the analyst consensus was $1.38, a difference of $0.04 per share. Shares closed the prior day at $153.55 a share and closed the day at $155.10 an increase of 1.0%.
- The Kroger Co. (KR) announced earnings after the market close on 2019-12-05. Earnings came in at $0.47 the analyst consensus was $0.48, a difference of $-0.01 per share. Shares closed the prior day at $27.64 a share and closed the day at $26.80 a decline of -3.0%.
In this new section we will be highlighting companies that trade on Nasdaq or on the NYSE with strong dividend yields during the week. If you are looking for income producing stocks that will provide a good return on your investment, here are some ideas:
- Amplify Energy Corp (AMPY) paid a dividend of $0.20 on 2019-12-03. The stock closed at $5.11 giving an estimated yield of 15.7%.
- Golden Ocean Gp (GOGL) paid a dividend of $0.15 on 2019-12-02. The stock closed at $5.76 giving an estimated yield of 10.4%.
- Chico's Fashion (CHS) paid a dividend of $0.09 on 2019-12-06. The stock closed at $4.03 giving an estimated yield of 8.7%.
- Schlumberger N.V. (SLB) paid a dividend of $0.50 on 2019-12-03. The stock closed at $34.99 giving an estimated yield of 5.7%
- Kronos Worldwide Inc (KRO) paid a dividend of $0.18 on 2019-12-02. The stock closed at $13.54 giving an estimated yield of 5.3%.
- Tapestry Inc (TPR) paid a dividend of $0.34 on 2019-12-05. The stock closed at $25.45 giving an estimated yield of 5.3%.
The Week Ahead
Black Friday is behind us, Cyber Monday is ahead of us and all of the speculation around holiday spending is yet to come. Here are this week's economic releases:
- Tuesday: National Federation of Independent Business releases its Small Business Optimism Index for November, forecasting an increase from 102.4 in October to 103.1.
- Wednesday: The BLS reports the Consumer Price Index for November, forecasting a 2% YoY rise compared to 1.8% in October.
- Thursday: The BLS reports the Producer Price Index for November, with a forecast of a gain of 1.2% as compared to 1.1% in October.
- Friday: The Census Bureau reports seasonally adjusted retail sales for November, estimating a gain of 0.5% as compared to a gain of 0.3% in October.
A lot of the news will be related to guidance for holiday sales, but there are still earnings announcements this week:
- Monday: Chewy, Thor Industries, Stitch Fix
- Tuesday: Toll Brothers, AutoZone, HD Supply Holdings
- Wednesday: Lululemon Athletica, Americal Eagle Outfitters
- Thursday: Adobe, Oracle
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.