The markets sprang back after a fear filled week last week to return to record breaking levels in spite of the Friday pull back.

All 3 major indexes were up for the week ended 2020-02-07. The Dow Jones Industrial average ended the week at 29,103 an increase of 3.0%. The broader S&P 500 index ended the week at 3,328 an increase of 3.2%. The Nasdaq 100 ended the week at 9,401 an increase of 4.6%. The average change for the major averages was up 3.57%.

With the strong gains from this past week all three major indexes returned to positive territory this week. The Dow Jones Industrial average is up 2.0% year to date, the S&P 500 is up 3.0% and the Nasdaq Composite is leading the way at +4.8% for the year.

Investment Style View

If you are a dividend investor, dividend stocks increased in the last week by 1.6%, with the iShares Dividend price climbing from $103.76 to $105.41.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks increased by 2.8% for the week while mid-cap stocks increased by 2.1% and small-cap stocks increased by 2.2%.

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 3.8% as compared to 3.0%. Mid-cap growth stocks outperformed mid-cap value stocks 2.3% as compared to 2.6%. Finally, Small-cap growth stocks outperformed small-cap value stocks 2.8% as compared to 2.3%.

Sector View

All but one sector ended the week significantly higher this week with the lone sector (Utilities) having a negative week.

As stated, the Utilities Sector lagged the other industries this week declining 0.38%

This was a very big week for most sectors in the market posting very big gains. The only positive sector that posted a sub-1% gain for the week was the Energy sector which advanced 0.64%. The big winners this week all posted 3% or more gains with Information Technology leading with +4.32%, Healthcare advancing 3.98%, the Materials Sector advancing 3.7%, Financials +3.3% and the Communication Services sector advancing 3.19%.



Earnings Roundup

Earnings season is beginning to slow down for the quarter, but there were still some really big names reporting earnings on the week:

  • Bristol-myers Squibb. (BMY) announced earnings after the market close on 2020-02-06. Earnings came in at $1.22 the analyst consensus was $0.88, a difference of $0.34 per share. Shares closed the prior day at $65.59 a share and closed the day at $67.10 an increase of 2.3%.
  • The Walt Disney Company. (DIS) announced earnings after the market close on 2020-02-04. Earnings came in at $1.53 the analyst consensus was $1.43, a difference of $0.10 per share. Shares closed the prior day at $144.73 a share and closed the day at $141.37 a decline of -2.3%.
  • Alphabet Inc. (GOOG), the parent company of Google announced earnings after the market close on 2020-02-03. Earnings came in at $15.35 the analyst consensus was $12.76, a difference of $2.59 per share. Shares closed the prior day at $1,485.94 a share and closed the day at $1,447.07 a decline of -2.6%.
  • Merck & Co., Incorporated. (MRK) announced earnings after the market close on 2020-02-05. Earnings came in at $1.16 the analyst consensus was $1.14, a difference of $0.02 per share. Shares closed the prior day at $88.36 a share and closed the day at $85.83 a decline of -2.9%.
  • Becton, Dickinson. (BDX) announced earnings after the market close on 2020-02-06. Earnings came in at $2.65 the analyst consensus was $2.63, a difference of $0.02 per share. Shares closed the prior day at $285.99 a share and closed the day at $252.25 a decline of -11.8%
  • Gilead Sciences Corporation. (GILD) announced earnings after the market close on 2020-02-04. Earnings came in at $1.30 the analyst consensus was $1.68, a difference of $-0.38 per share. Shares closed the prior day at $67.40 a share and closed the day at $65.87 a decline of -2.3%.
  • GlaxoSmithKline. (GSK) announced earnings after the market close on 2020-02-05. Earnings came in at $0.64 the analyst consensus was $0.68, a difference of $-0.04 per share. Shares closed the prior day at $47.12 a share and closed the day at $45.07 a decline of -4.4%.
  • Qualcomm Incorporated. (QCOM) announced earnings after the market close on 2020-02-05. Earnings came in at $0.99 the analyst consensus was $0.85, a difference of $0.14 per share. Shares closed the prior day at $90.91 a share and closed the day at $90.61 a decline of -0.3%.


Dividend Payments

With earnings season still going strong, dividend season hasn't really started yet. A few companies going ex-dividend this past week were:

  • Sunoco LP (SUN) paid a dividend of $0.83 on 2020-02-06. The stock closed at $31.35 giving an estimated yield of 10.5%.
  • Archrock Inc (AROC) paid a dividend of $0.15 on 2020-02-06. The stock closed at $8.3 giving an estimated yield of 7.0%.
  • Olin Corp (OLN) paid a dividend of $0.20 on 2020-02-07. The stock closed at $16.05 giving an estimated yield of 5.0%.
  • West Bancorp (WTBA) paid a dividend of $0.21 on 2020-02-04. The stock closed at $23.57 giving an estimated yield of 3.6%.
  • Metlife Inc (MET) paid a dividend of $0.44 on 2020-02-03. The stock closed at $49.69 giving an estimated yield of 3.5%.
  • Cit Group Inc (CIT) paid a dividend of $0.35 on 2020-02-06. The stock closed at $47.75 giving an estimated yield of 2.9%.
  • Northern Technologies Intl Corp (NTIC) paid a dividend of $0.07 on 2020-02-04. The stock closed at $14.15 giving an estimated yield of 1.8%.


The Week Ahead

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

  • Monday:
  • Tuesday: the BLS releases its Jobs Openings and Labor Turnover Survey (JOLT) for December with a forecasted 6.78 million job openings for 12/31
  • Wednesday:
  • Thursday: the BLS reports on the Consumer Price Index, with an expected increase of 2.5%, up from Decembers' 2.3%
  • Friday: the Census Bureau reports retail-sales data for January with an expected increase of 0.3%, in line with December.

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

  • Monday: Allergan, DaVita
  • Tuesday: Dominion Energy, Hasbro, Lyft, Under Armour
  • Wednesday: Applied Materials, CVS Health, Molson Coors Beverage
  • Thursday: Alibaba Group Holdings, Duke Energy, Nvidia
  • Friday: AstraZeneca, Newell Brands


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.