This was another week that delivered records on all of the major indexes. All 3 major indexes were up for the week ended 2019-12-13. The Dow Jones Industrial average ended the week at 28,135 an increase of 0.4%. The broader S&P 500 index ended the week at 3,169 an increase of 0.7%. The Nasdaq 100 ended the week at 8,488 an increase of 1.1%. The average change for the major averages was up 0.74%.

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 20.6%, the S&P 500 is up 26.4% and the Nasdaq is leading the pack at 27.9% up for the year.

According to all news reports, we've finally gotten the China trade deal that has been anticipated for much of the later half of the year, there was an election in Britain that has BREXIT ramifications, it's the Christmas season, where we typically have a year-end rally, and it's dividend season, all contributing to make us lots of money this year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 0.8%, with the iShares Dividend price climbing from $103.87 to $104.67.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 1.0% for the week while mid-cap stocks increased by 0.4% and small-cap stocks decreased by 0.3%.

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 growth stocks outperformed large-cap value stocks this week 1.0% vs. 0.6%. Mod-cap value stocks outperformed Mid-cap growth stocks this week 0.2% vs. -0.0%. Small-cap value stocks outperformed Small-cap growth stocks this week 0.6% vs. -0.7%.

Sector View

Nine of the 11 sectors posted gains this week with 2 losing ground, 1 of them losing nearly 3% this week. Four sectors posted gains in excess of 1% this week with Technology leading (+1.77%), Energy (+1.14%), Consumer Discretionary (+1.08%) and the Financial Sector (+1.02%) all leading the markets higher.

The two lagging sectors this week were the Communications Services sector, which declined by 0.6% and the Real Estate sector, the loser of the week, dropping 2.7%

The Consumer Staples sector gained 0.11% this week and has a great year-to-date trend.



Earnings Roundup

There were 49 earnings releases this week

  • Adobe Systems Inc. (ADBE) announced earnings after the market close on 2019-12-12. Earnings came in at $2.29 the analyst consensus was $2.26, a difference of $0.03 per share. Shares closed the prior day at $305.96 a share and closed the day at $317.94 an increase of 3.9%.
  • Costco Wholesale. (COST) announced earnings after the market close on 2019-12-12. Earnings came in at $1.73 the analyst consensus was $1.70, a difference of $0.03 per share. Shares closed the prior day at $297.34 a share and closed the day at $291.87 a decline of -1.8%.
  • Lululemon Athletica. (LULU) announced earnings after the market close on 2019-12-11. Earnings came in at $0.96 the analyst consensus was $0.93, a difference of $0.03 per share. Shares closed the prior day at $233.19 a share and closed the day at $224.47 a decline of -3.7%.
  • Toll Brothers Inc. (TOL) announced earnings after the market close on 2019-12-09. Earnings came in at $1.41 the analyst consensus was $1.29, a difference of $0.12 per share. Shares closed the prior day at $41.42 a share and closed the day at $39.40 a decline of -4.9%.
  • Broadcom Inc. (AVGO) announced earnings after the market close on 2019-12-12. Earnings came in at $5.39 the analyst consensus was $5.36, a difference of $0.03 per share. Shares closed the prior day at $327.80 a share and closed the day at $315.42 a decline of -3.8%.
  • Autozone, Inc. (AZO) announced earnings after the market close on 2019-12-10. Earnings came in at $14.30 the analyst consensus was $13.69, a difference of $0.61 per share. Shares closed the prior day at $1,169.00 a share and closed the day at $1,250.00 an increase of 6.9%.
  • Chewy Inc. (CHWY) announced earnings after the market close on 2019-12-09. Earnings came in at $-0.20 the analyst consensus was $-0.16, a difference of $-0.04 per share. Shares closed the prior day at $24.18 a share and closed the day at $25.50 an increase of 5.5%.


Dividend Payments

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:

  • Macy's Inc (M) paid a dividend of $0.38 on 2019-12-12. The stock closed at $15.71 giving an estimated yield of 9.6%.
  • Ship Finance International (SFL) paid a dividend of $0.35 on 2019-12-13. The stock closed at $14.38 giving an estimated yield of 9.7%.
  • New Mountain Finance Corp (NMFC) paid a dividend of $0.34 on 2019-12-12. The stock closed at $13.5 giving an estimated yield of 10.1%.
  • Iron Mountain Inc (IRM) paid a dividend of $0.62 on 2019-12-13. The stock closed at $31.59 giving an estimated yield of 7.8%.
  • Pimco Corporate (PCN) paid a dividend of $0.06 on 2019-12-13. The stock closed at $18.64 giving an estimated yield of 7.2%.


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:

  • Monday: National Association of Home Builders releases its Housing Market Index for December
  • Tuesday: the Census Bureau reports on new residential construction for November, the BLS releases its Job Openings and Labor Turnover Survey for October
  • Wednesday:
  • Thursday: The Banks of England and Japan announce their monetary-policy decisions. The Conference Board releases its Leading Economic Index for November
  • Friday:

The major earnings announcements for this week are:

  • Monday:
  • Tuesday: Cintas, FedEx
  • Wednesday: General Mills, Paychex
  • Thursday: Accenture, Conagra, Nike
  • Friday: CarMax

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.