This was a very difficult week for the financial markets with fears from the coronavirus pushing the major indexes to big losses this week. This was the biggest week for earnings announcements with some good news and some bad news coming out, with the good news pushing some stocks higher but the majority were pressured down.

All 3 major indexes were down for the week ended 2020-01-31. The Dow Jones Industrial average ended the week at 28,256 a decline of 2.5%. The broader S&P 500 index ended the week at 3,226 a decline of 2.1%. The Nasdaq 100 ended the week at 8,992 a decline of 1.6%. The average change for the major averages was down 2.10%.

With the downward pressure from this week 2 of the 3 major indexes are now negative for the year. The Dow Jones Industrial Average is down 1.0% for the year, the S&P 500 is down 0.2% but the Nasdaq Composite is still up 0.2% for the year, largely due to a couple of very strong earnings announcements this week (and in spite of another).

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 2.4%, with the iShares Dividend price declining from $106.36 to $103.76.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 2.2% for the week while mid-cap stocks decreased by 2.2% and small-cap stocks decreased by 2.8%.

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 -1.3% vs. -2.7%. Mid-cap growth stocks outperformed Mid-cap value stocks this week -2.2% vs. -3.0%. Small-cap growth stocks outperformed Small-cap value stocks this week -2.5% vs. -2.9%.

Sector View

With such a strong down-flow in share prices it's a little surprising that 2 of the 11 sectors eeked out gains this week.

The two sectors with gains this week were the Utilities sector, which gained 0.7% and the Consumer Discretionary sector which had a very small gain of 0.04%, essentially flat.

For the second week in a row the Energy sector lead the charge down with a 5.5% drop this week - combined with last weeks 4.7% drop, the Energy sector is down over 10% in the last 2 weeks. The other poor performers this week were the Materials sector, down 3.4%, the Communication Services sector, down 3.2% and the Health Sector down 2.98%.



Earnings Roundup

The busiest earnings week of the year was highlighted by some of the biggest names and market leaders. Amazon, Apple and Microsoft had very good earnings reports, Facebook...... not so much:

  • Apple Inc. (AAPL) announced earnings after the market close on 2020-01-28. Earnings came in at $4.99 the analyst consensus was $4.54, a difference of $0.45 per share. Shares closed the prior day at $317.69 a share and closed the day at $324.34 an increase of 2.1%.
  • Amazon.com, Incorporated. (AMZN) announced earnings after the market close on 2020-01-30. Earnings came in at $6.47 the analyst consensus was $3.98, a difference of $2.49 per share. Shares closed the prior day at $1,870.68 a share and closed the day at $2,008.72 an increase of 7.4%.
  • Facebook, Inc. (FB) announced earnings after the market close on 2020-01-29. Earnings came in at $2.56 the analyst consensus was $2.52, a difference of $0.04 per share. Shares closed the prior day at $223.23 a share and closed the day at $209.53 a decline of -6.1%.
  • Microsoft Corporatin. (MSFT) announced earnings after the market close on 2020-01-29. Earnings came in at $1.51 the analyst consensus was $1.32, a difference of $0.19 per share. Shares closed the prior day at $168.04 a share and closed the day at $172.78 an increase of 2.8%.
  • Mastercard Incorporated. (MA) announced earnings after the market close on 2020-01-29. Earnings came in at $1.96 the analyst consensus was $1.87, a difference of $0.09 per share. Shares closed the prior day at $320.27 a share and closed the day at $320.32, essentially flat.
  • Visa Inc. (V) announced earnings after the market close on 2020-01-30. Earnings came in at $1.46 the analyst consensus was $1.46, a difference of $0.00 per share. Shares closed the prior day at $208.21 a share and closed the day at $198.97 a decline of -4.4%.
  • Pfizer Inc. (PFE) announced earnings after the market close on 2020-01-28. Earnings came in at $0.55 the analyst consensus was $0.57, a difference of $-0.02 per share. Shares closed the prior day at $40.16 a share and closed the day at $38.14 a decline of -5.0%.
  • Exxon Mobil Corporatin. (XOM) announced earnings after the market close on 2020-01-31. Earnings came in at $0.41 the analyst consensus was $0.44, a difference of $-0.03 per share. Shares closed the prior day at $64.79 a share and closed the day at $62.12 a decline of -4.1%.


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:

  • Peoples Bancorp NC (PEBK) paid a dividend of $0.15 on 2020-01-31. The stock closed at $27.35 giving an estimated yield of 2.0%.
  • Conagra Brands Inc (CAG) paid a dividend of $0.21 on 2020-01-30. The stock closed at $33.25 giving an estimated yield of 2.6%.
  • Hasbro Inc (HAS) paid a dividend of $0.68 on 2020-01-30. The stock closed at $102.91 giving an estimated yield of 2.6%.
  • Clorox Company (CLX) paid a dividend of $1.06 on 2020-01-28. The stock closed at $156.07 giving an estimated yield of 2.7%


The Week Ahead

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

  • Monday: The Iowa Caucuses get under way for the presidential election later this year.
  • Tuesday: The annual State of the Union Address is scheduled in front of a very divided Congress.
  • Wednesday: The ISM releases its Non-Manufacturing Report on Business for January with an expected reading of 55.2, in line with December.
  • Wednesday: ADP issues its National Employment report for January with an expected rise of 153,000 vs Decembers' increase of 202,000.
  • Thursday: The BLS reports labor costs and productivity for the 4th quarter. The expectation is for an increase of 0.95% in labor costs and a 1.1% gain in productivity.
  • Friday: The BLS releases its employment report for January with the unemployment rate expected to remain at 3.5% and a forecast addition of 157,500 jobs in January

The heart of earnings season continues with some big names reporting earnings this coming week.:

  • Monday: Sysco, Aecom, Alphabet (Google)
  • Tuesday: Chipotle, ConocoPhillips, Clorox, Walt Disney, Ford Motor
  • Wednesday: Merck, General Motors, Spotify, Qualcomm
  • Thursday: Uber Technologies, Twitter, News Corp
  • Friday: AbbVie, Post Holdings


Authors Note: Please note, the writer currently owns no individual stocks.

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.