This week was again highlighted with several records with the Dow Jones Industrial average closing above 29,000 and the Nasdaq closing above 9,000 and most importantly, this week kicked off earnings seasons with several major banks reporting earnings this week.

All 3 major indexes were up for the week ended 2020-01-17. The Dow Jones Industrial average ended the week at 29,348 an increase of 1.8%. The broader S&P 500 index ended the week at 3,330 an increase of 2.0%. The Nasdaq 100 ended the week at 9,174 an increase of 2.3%. The average change for the major averages was up 2.03%.

Two of the three major averages are in positive territory in this second end-of-week update with the S&P500 up 1.1% in the first 10 days of the year, the Dow up 1.0% and the Nasdaq composite down 0.1% to start the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 2.2%, with the iShares Dividend price climbing from $104.97 to $107.30.

We are still early in the year but all three major indexes are up with the Nasdaq Composite up 2.2%, the Dow up 2.8% and the S&P leads with an increase of 3.1%.

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 growth stocks of all 3 capitalization groups outperformed the value stocks. Large-cap growth stocks outperformed large-cap value stocks 2.2% as compared to -0.4%. Mid-cap growth stocks outperformed mid-cap value stocks 2.3% as compared to 0.0%. Finally, Small-cap growth stocks outperformed small-cap value stocks 0.7% as compared to -0.6%.

Sector View

The sectors weren't very mixed this week with all but one growing by more than 1.2%. The one sector that did not grow by the 1.2% lost ground this week.

The Energy sector was the lone decling sector this week, ending the week with a decline of 1.2%

The Utility sector lead the way this week with an increase of 3.8% on the week. The next three sectors all grew by more than 2.5% - the Information Technology sector increased by 2.85%, the Communication Services sector grew by 2.81% and the Materials sector grew by 2.58%



Earnings Roundup

The beginning of earnings season is typically highlighted with a week of big bank earnings releases. Here is how this season started out:

  • Bank Of America Corporation. (BAC) announced earnings after the market close on 2020-01-15. Earnings came in at $0.74 the analyst consensus was $0.68, a difference of $0.06 per share. Shares closed the prior day at $35.32 a share and closed the day at $34.67 a decline of -1.8%.
  • Citigroup Inc. (C) announced earnings after the market close on 2020-01-14. Earnings came in at $1.90 the analyst consensus was $1.82, a difference of $0.08 per share. Shares closed the prior day at $80.65 a share and closed the day at $81.91 an increase of 1.6%.
  • Jpmorgan Chase Corporation. (JPM) announced earnings after the market close on 2020-01-14. Earnings came in at $2.57 the analyst consensus was $2.32, a difference of $0.25 per share. Shares closed the prior day at $137.20 a share and closed the day at $138.80 an increase of 1.2%.
  • Wells Fargo & Company. (WFC) announced earnings after the market close on 2020-01-14. Earnings came in at $0.93 the analyst consensus was $1.12, a difference of $-0.19 per share. Shares closed the prior day at $52.11 a share and closed the day at $49.30 a decline of -5.4%.
  • The Goldman Sachs Company. (GS) announced earnings after the market close on 2020-01-15. Earnings came in at $4.69 the analyst consensus was $5.20, a difference of $-0.51 per share. Shares closed the prior day at $245.66 a share and closed the day at $245.21 a decline of -0.2%.
  • Unitedhealth Group. (UNH) announced earnings after the market close on 2020-01-15. Earnings came in at $3.90 the analyst consensus was $3.77, a difference of $0.13 per share. Shares closed the prior day at $288.24 a share and closed the day at $296.41 an increase of 2.8%.
  • Delta Air Lines. (DAL) announced earnings after the market close on 2020-01-14. Earnings came in at $1.70 the analyst consensus was $1.40, a difference of $0.30 per share. Shares closed the prior day at $59.49 a share and closed the day at $61.45 an increase of 3.3%.


Dividend Payments

After a few big weeks of year-end dividends, things have slowed down for these payments, but there's still a few big ones:

  • Abbvie Inc (ABBV) paid a dividend of $1.18 on 2020-01-14. The stock closed at $88.2 giving an estimated yield of 5.4%
  • Abbott Laboratories (ABT) paid a dividend of $0.36 on 2020-01-14. The stock closed at $85.74 giving an estimated yield of 1.7%.
  • Quest Diagnostics Inc (DGX) paid a dividend of $0.53 on 2020-01-13. The stock closed at $106.56 giving an estimated yield of 2.0%.
  • Shaw Communications Inc (SJR) paid a dividend of $0.08 on 2020-01-14. The stock closed at $19.78 giving an estimated yield of 4.6%.
  • Footlocker Inc (FL) paid a dividend of $0.38 on 2020-01-16. The stock closed at $39.38 giving an estimated yield of 3.9%.


The Week Ahead

Things will begin to amp up with reports on activity to close out 2019:

  • Monday: US markets are closed for Martin Luther King Day
  • Tuesday: Davos' World Economic Forum kicks off in Switzerland
  • Wednesday: the Bank of Japan announces their monetary policy decision, likely keeping rates unchanged at -0.1%
  • Thursday: the European Central Bank annuonces its monetary policy decision with the rate expected to remain steady at -0.5%.
  • Friday: IHS Markit reports its US Purchasing Managers' Index for January.

Earnings season starts to kick it up with the following companies reporting earnings this week:

  • Monday:
  • Tuesday: Capital One, Halliburton, IBM, Netflix
  • Wednesday: Abbott Labs, Johnson & Johnson
  • Thursday: American Airlines, Comcast, Intel
  • Friday: American Express, Synchrony Financial, Ericsson


Authors Note: Please note, the writer one stock that's mentioned which is Intel.

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.