The markets not only ended the week with a down day on Friday, but much of the week was down as concerns around the coronavirus are finally taking hold in the market indexes.

All 3 major indexes were down for the week ended 2020-02-21. The Dow Jones Industrial average ended the week at 28,992 a decline of 1.4%. The broader S&P 500 index ended the week at 3,338 a decline of 1.3%. The Nasdaq 100 ended the week at 9,447 a decline of 1.8%. The average change for the major averages was down 1.49%.

This week cut into all of the major indexes this week dropping the year-to-date gains to; the Nasdaq is now up 5.3%, the S&P 500 is up 3.3% and the Dow Jones Industrial gain was nearly cut in half at 1.6% year to date.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 0.6%, with the iShares Dividend price declining from $106.16 to $105.50.

In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks decreased by 0.5% for the week while large-cap stocks decreased by 1.1% and small-cap stocks decreased by 0.8%.

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 value stocks outperformed large-cap growth stocks this week -0.8% vs. -1.2%. Mod-cap value stocks outperformed Mid-cap growth stocks this week -0.9% vs. -1.2%. Small-cap growth stocks outperformed Small-cap value stocks this week -0.4% vs. -0.5%.

Sector View

In a reversal of fortunes over last week, all 11 sectors declined this week.

The biggest loser of the week was the Information Technology sector which dropped 2.43%. Much of this was started/lead by a warning from Apple that the coronavirus was going to eat into earnings this quarter. Other big declines were in the Financial sector, which dropped 1.24% and the Communication Services sector which declined by 1.0% on the week.



Earnings Roundup

The shortened week featured over 400 earnings announcements. A lot of the "star" companies have already reported their latest earnings, but there were still several big name companies that reported earnings this week including:

  • Walmart Inc. (WMT) announced earnings after the market close on 2020-02-18. Earnings came in at $1.38 the analyst consensus was $1.43, a difference of $-0.05 per share. Shares closed the prior day at $117.89 a share and closed the day at $119.63 an increase of 1.48%.
  • Royal Bank Of Canada. (RY) announced earnings after the market close on 2020-02-21. Earnings came in at $1.85 the analyst consensus was $1.73, a difference of $0.12 per share. Shares closed the prior day at $81.40 a share and closed the day at $82.62 an increase of 1.5%.
  • Southern Companies. (SO) announced earnings after the market close on 2020-02-20. Earnings came in at $0.27 the analyst consensus was $0.26, a difference of $0.01 per share. Shares closed the prior day at $68.61 a share and closed the day at $69.81 an increase of 1.7%.
  • Medtronic Plc (MDT) announced earnings after the market close on 2020-02-18. Earnings came in at $1.44 the analyst consensus was $1.38, a difference of $0.06 per share. Shares closed the prior day at $117.33 a share and closed the day at $112.66 a decrease of 1.4%.
  • American Electric Power. (AEP) announced earnings after the market close on 2020-02-20. Earnings came in at $0.60 the analyst consensus was $0.60, a difference of $0.00 per share. Shares closed the prior day at $103.50 a share and closed the day at $102.38 a decline of -1.1%.
  • Deere & Company. (DE) announced earnings after the market close on 2020-02-21. Earnings came in at $1.63 the analyst consensus was $1.28, a difference of $0.35 per share. Shares closed the prior day at $165.83 a share and closed the day at $177.43 an increase of 7.0%.
  • Petroleo Brasil. (PBR) announced earnings after the market close on 2020-02-19. Earnings came in at $0.00 the analyst consensus was $0.37, a difference of $-0.37 per share. Shares closed the prior day at $14.89 a share and closed the day at $14.40 a decline of -3.3%.
  • Analog Devices, Inc. (ADI) announced earnings after the market close on 2020-02-19. Earnings came in at $1.03 the analyst consensus was $1.00, a difference of $0.03 per share. Shares closed the prior day at $118.57 a share and closed the day at $123.89 an increase of 4.5%.


Dividend Payments

With earnings season still going strong, dividend are just beginning to pick up. A few companies going ex-dividend this past week were:

  • Boise Cascade L.L.C. (BCC) paid a dividend of $0.10 on 2020-02-21. The stock closed at $40.95 giving an estimated yield of 1.0%.
  • Aflac Incorporated (AFL) paid a dividend of $0.28 on 2020-02-18. The stock closed at $51.88 giving an estimated yield of 2.2%.
  • Snap-On Inc (SNA) paid a dividend of $1.08 on 2020-02-21. The stock closed at $160.07 giving an estimated yield of 2.7%.
  • Delta Air Lines Inc (DAL) paid a dividend of $0.40 on 2020-02-19. The stock closed at $58.51 giving an estimated yield of 2.8%.


The Week Ahead

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

  • Monday: Japanese markets are closed for the emperor's birthday
  • Tuesday: Core Logic releases the Case-Shiller Home Price Index for December, with expectations for a 0.5% increase over November.
  • Wednesday: the Census Bureau reports new home sales for January, with an expected increase of 2.3% over December.
  • Thursday: the Census Bureau releases Durable Goods for January with an expected decline of 0.9% compared with a 2.4% increase in December.
  • Friday: the BEA releases Personal Income and Outlays for January with an expected increase of 0.3% as compared to an income increase of 0.2% and spending increase of 0.3% in December.

The earnings continue this week with the following companies reporting earnings:

  • Monday: HP, Intuit, Palo Alto Networks
  • Tuesday: Home Depot, Macy's, Salesforce.com
  • Wednesday: L Brands, TJX, Square
  • Thursday: Autodesk, Best Buy, Dell Technologies, VMWare
  • Friday: AES, Occidental Petroleum


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.