This past week was another week of records with the Nasdaq closing above 9,000 for the first time ever. All 3 major indexes were up for the week ended 2019-12-27. The Dow Jones Industrial average ended the week at 28,645 an increase of 0.7%. The broader S&P 500 index ended the week at 3,240 an increase of 0.6%. The Nasdaq 100 ended the week at 8,771 an increase of 1.1%. The average change for the major averages was up 0.77%.
The Santa Claus rally continued into this week with the year to date performance of the major indexes at some of the strongest in years. The Dow Jones Industrial is nwo up 22.8% for the year, the S&P500 is up 29.2% and the Nasdaq is up 32.2% for the year.
It was a very quiet week in the financial markets this week with very little news that would normally affect the market and this was the lightest week so far this year with only 2 earnings announcements this week.
Investment Style View
If you are a dividend investor, dividend stocks declined in the last week by 0.2%, with the iShares Dividend price declining from $105.76 to $105.55.
In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 0.7% for the week while mid-cap stocks increased by 0.1% and small-cap stocks decreased by 0.2%.
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 0.8% as compared to 0.2%. Mid-cap growth stocks outperformed mid-cap value stocks 0.4% as compared to -0.1%. Finally, Small-cap growth stocks outperformed small-cap value stocks -0.0% as compared to -0.5%.
This past week only 1 of the 11 sectors declined again this week, so this was a broad based increase. The Utilities sector declined by 0.45% on the week.
The sector increases were a little more subdued this week (as compared to last week. The Consumer Discretionary sector led the markets this week with a 1.29% increase followed by the Information Technology Sector which increased 1.0% and after a down week last week, the Energy sector increased by 0.69% on the week.
There were only 2 earnings releases this week, they were:
- Oncosec Medical Incorporated. (ONCS) announced earnings after the market close on 2019-12-27. Earnings came in at $0.00 the analyst consensus was $-0.75, a difference of $0.75 per share. Shares closed the prior day at $1.79 a share and closed the day at $1.83 an increase of 2.2%.
- Neogen Corporation. (NEOG) announced earnings after the market close on 2019-12-23. Earnings came in at $0.31 the analyst consensus was $0.32, a difference of $-0.01 per share. Shares closed the prior day at $69.00 a share and closed the day at $65.77 a decrease of 4.7%.
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:
- Altria Group (MO) paid a dividend of $0.84 on 2019-12-24. The stock closed at $50.28 giving an estimated yield of 6.7%.
- British American Tobacco Industries (BTI) paid a dividend of $0.67 on 2019-12-26. The stock closed at $42.25 giving an estimated yield of 6.3%.
- Medifast Inc (MED) paid a dividend of $1.13 on 2019-12-26. The stock closed at $108.28 giving an estimated yield of 4.2%.
- Ituran Location (ITRN) paid a dividend of $0.24 on 2019-12-23. The stock closed at $25.04 giving an estimated yield of 3.8%.
- International Flavors & Fragrances (IFF) paid a dividend of $0.75 on 2019-12-26. The stock closed at $126.28 giving an estimated yield of 2.4%.
The Week Ahead
Things should continue to be quiet this week, maybe:
- Monday: The Institute for Supply Management releases it's Purchasing Managers Index for December, with an expectation of an increase from 46.3 to 48.3
- Monday: The National Association of Realtors reports on Pending Home Sales for November with an expectation of an increase of 1.3% as compared to a decline in October of 1.7%
- Tuesday: Consumer Confidence for November is reported by The Conference Board
- Wednesday: Markets are closed for New Years
- Thursday: The Department of Labor reports initial jobless claims for the week, expecting a 4-week average of 228,000
- Friday: The Census Bureau reports construction-spending for November with an expectation for a 0.3% gain.
The major earnings announcements for this week are (well, there really aren't any):
Have a great holiday season everyone
Authors Note: Please note, the writer owns no stocks discussed in this article.
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.