This week the majority of the market took a tumble. After several weeks of continuous records across the major indexes, the 'markets' were looking for a reason to take a break. The coronavirus was the catalyst for this break. The virus outbreak in China shut down cities with populations totalling over 35 million people and put slow-down fears into the global economy.

All three major indexes were down for the week ended 1/24/2020. The Dow Jones Industrial average ended the week at 28,990 a decline of 1.2%. The broader S&P 500 index ended the week at 3,295 a decline of 1.0%. The Nasdaq 100 ended the week at 9,141 a decline of 0.4%. The average change for the major averages was down 0.87%.

All of the major indexes are still up year-to-date with the S&P leading with an increase of 2.0%, the Nasdaq 100 at 1.9% and the Dow lagging at +1.6% for the year, slowed largely by continued problems with Boeing.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.9%, with the iShares Dividend price declining from $107.30 to $106.36.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 0.7% for the week while large-cap stocks decreased by 0.9% and small-cap stocks decreased by 2.0%.

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 -0.4% as compared to -1.1%. Mid-cap growth stocks outperformed mid-cap value stocks -0.6% as compared to -1.9%. Finally, Small-cap growth stocks outperformed small-cap value stocks -1.4% as compared to -2.4%.

Sector View

With a significantly down week this week several sectors lost more than 2% on the week. In all 3 of the 11 sectors were up, while 8 sectors declined this week.

The leading sector this week was the Utilities sector which was able to grow by 2.18%. Both the Real Estate and Technology sectors also increased, 0.81% and 0.29% respectively.

The Energy sector got slammed this week losing 4.65% largely on fears of a big slowdown in China due to the virus. The other 2 sectors that lost more than 2% are the Materials sector, which lost 2.5% and the Healthcare sector, which lost 2.17%.



Earnings Roundup

With the height of earnings season starting this week, there were a lot of big names that reported earnings this week with mostly strong quarterly reports. These weren't enough to propel the whole market forward.:

  • Abbott Laboratories. (ABT) announced earnings after the market close on 2020-01-22. Earnings came in at $0.95 the analyst consensus was $0.95, a difference of $0.00 per share. Shares closed the prior day at $89.73 a share and closed the day at $91.86 an increase of 2.4%.
  • Intel Corporation. (INTC) announced earnings after the market close on 2020-01-23. Earnings came in at $1.52 the analyst consensus was $1.24, a difference of $0.28 per share. Shares closed the prior day at $63.32 a share and closed the day at $68.47 an increase of 8.1%.
  • Johnson & Johnson Incorporated. (JNJ) announced earnings after the market close on 2020-01-22. Earnings came in at $1.88 the analyst consensus was $1.86, a difference of $0.02 per share. Shares closed the prior day at $149.27 a share and closed the day at $148.25 a decline of -0.7%.
  • Procter & Gamble Corporation. (PG) announced earnings after the market close on 2020-01-23. Earnings came in at $1.42 the analyst consensus was $1.37, a difference of $0.05 per share. Shares closed the prior day at $126.31 a share and closed the day at $124.99 a decline of -1.0%.
  • American Express Corporation. (AXP) announced earnings after the market close on 2020-01-24. Earnings came in at $2.03 the analyst consensus was $2.00, a difference of $0.03 per share. Shares closed the prior day at $131.37 a share and closed the day at $135.11 an increase of 2.8%.
  • International Business Machines. (IBM) announced earnings after the market close on 2020-01-21. Earnings came in at $4.71 the analyst consensus was $4.69, a difference of $0.02 per share. Shares closed the prior day at $139.17 a share and closed the day at $143.89 an increase of 3.4%.
  • Netflix, Inc. (NFLX) announced earnings after the market close on 2020-01-21. Earnings came in at $1.30 the analyst consensus was $0.52, a difference of $0.78 per share. Shares closed the prior day at $338.11 a share and closed the day at $326.00 a decline of -3.6%
  • Union Pacific Corporation. (UNP) announced earnings after the market close on 2020-01-23. Earnings came in at $2.02 the analyst consensus was $2.03, a difference of $-0.01 per share. Shares closed the prior day at $180.93 a share and closed the day at $187.19 an increase of 3.5%.


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:

  • Alexander's Inc (ALX) paid a dividend of $4.50 on 2020-01-24. The stock closed at $340.17 giving an estimated yield of 5.3%.
  • Star Gas Partners LP (SGU) paid a dividend of $0.13 on 2020-01-24. The stock closed at $9.43 giving an estimated yield of 5.3%.
  • Oneok Inc (OKE) paid a dividend of $0.94 on 2020-01-24. The stock closed at $74.84 giving an estimated yield of 5.0%.
  • Royal Bank of Canada (RY) paid a dividend of $0.81 on 2020-01-24. The stock closed at $80.48 giving an estimated yield of 4.0%.
  • Union Bankshares Inc (UNB) paid a dividend of $0.32 on 2020-01-24. The stock closed at $35.01 giving an estimated yield of 3.7%.


The Week Ahead

Big Economic and other data {or big events} being reported this week are:

  • Monday: December new-home sales are reported by the Census Bureau with an expected increase of 1.2% from November.
  • Tuesday: Consumer confidence is reported by the Conference Board with an expected reading above December.
  • Wednesday: The Fed announces its monetary-policy decision with no change in rates expected.
  • Thursday: The Bank of England announces its monetary-policy decision with a rate cut to 0.5% expected (from the current rate of 0.75%)
  • Friday: The BEA releases its Personal Income and Outlays report for December, both expected to increase by 0.3% as compared to 0.4% in November.

The heart of earnings season continues this coming week with a lot of the big market movers reporting this week including:

  • Monday: Juniper Networks, DR Horton
  • Tuesday: 3M, AMD, Apple, Starbucks
  • Wednesday: AT&T, ADP, Boeing, Facebook, Microsoft
  • Thursday: Amgen, Coca-Cola, Verizon, Visa
  • Friday: Exxon Mobil, Colgate-Palmolive, Charter Communications


Authors Note: Please note, the writer one stock that's mentioned which is Intel, but that position was closed out on Friday.

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.