Well that was quite a week this week. The markets were slammed this week with the worst performance since the financial crisis back in 2008. The response of the computerized algorithms to the coronavirus was extreme to say the least with every sector in the market plummeting over 10%.

All 3 major indexes were down for the week ended 2020-02-28. The Dow Jones Industrial average ended the week at 25,409 a decline of 12.4%. The broader S&P 500 index ended the week at 2,954 a decline of 11.5%. The Nasdaq 100 ended the week at 8,462 a decline of 10.4%. The average change for the major averages was down 11.42%.

This week put all of the major indexes into negative territory for the year with the best performance in the Nasdaq, which is now down 5.7% on the year followed by the S&P500, which is now down 8.6% and the Dow Industrials which is down 11% year to date.

Investment Style View

If you are a dividend investor, dividend stocks declined in the last week by 12.6%, with the iShares Dividend price declining from $105.50 to $92.16.

In the latest week, large cap stocks outpaced both small cap and mid cap stocks. Large cap stocks decreased by 11.7% for the week while mid-cap stocks decreased by 12.7% and small-cap stocks decreased by 12.7%.

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 -10.7% vs. -11.9%. Mid-cap growth stocks outperformed Mid-cap value stocks this week -10.6% vs. -14.7%. Small-cap growth stocks outperformed Small-cap value stocks this week -10.9% vs. -13.9%.

Sector View

For the second week in a row all 11 sectors of the market were down and this weeks' performance brought everything down by more than 10%.

The "winner" for the week was the Communication Services sector which is the only sector that declined LESS than 10%, had a decline of 9.6%. The hardest hit sectors were the Energy sector, which declined 15.24% followed by the Financials, down 13.6%, Materials down 12.72% and Real Estate which declined by 12.32%.

Note - while we don't actively track and report (today) on global markets, there was a report in the afternoon on Friday the 28th on CNBC that indicated that markets across the globe were all down a fairly uniform 12-15% for the week.



Earnings Roundup

There was in fact more news than the coronavirus this week with nearly 700 companies reporting earnings this week but

  • Anheuser-busch Corporation. (BUD) announced earnings after the market close on 2020-02-27. Earnings came in at $0.48 the analyst consensus was $0.53, a difference of $-0.05 per share. Shares closed the prior day at $66.29 a share and closed the day at $60.21 a decline of -9.2%.
  • Salesforce.com, Inc. (CRM) announced earnings after the market close on 2020-02-25. Earnings came in at $0.66 the analyst consensus was $0.55, a difference of $0.11 per share. Shares closed the prior day at $181.27 a share and closed the day at $178.87 a decline of -1.3%.
  • The Home Depot, Inc. (HD) announced earnings after the market close on 2020-02-25. Earnings came in at $2.28 the analyst consensus was $2.11, a difference of $0.17 per share. Shares closed the prior day at $239.70 a share and closed the day at $237.38 a decline of -1.0%.
  • Lowe's Companies. (LOW) announced earnings after the market close on 2020-02-26. Earnings came in at $0.94 the analyst consensus was $0.91, a difference of $0.03 per share. Shares closed the prior day at $118.52 a share and closed the day at $113.30 a decline of -4.4%.
  • Baidu, Inc. (BIDU) announced earnings after the market close on 2020-02-27. Earnings came in at $3.81 the analyst consensus was $3.71, a difference of $0.10 per share. Shares closed the prior day at $119.91 a share and closed the day at $119.98 an increase of 0.1%.
  • Intuit Inc. (INTU) announced earnings after the market close on 2020-02-24. Earnings came in at $1.16 the analyst consensus was $1.02, a difference of $0.14 per share. Shares closed the prior day at $286.43 a share and closed the day at $284.80 a decline of -0.6%.
  • Keurig Dr Pepper Corporation. (KDP) announced earnings after the market close on 2020-02-27. Earnings came in at $0.35 the analyst consensus was $0.35, a difference of $0.00 per share. Shares closed the prior day at $28.73 a share and closed the day at $28.24 a decline of -1.7%.
  • The Tjx Companies. (TJX) announced earnings after the market close on 2020-02-26. Earnings came in at $0.81 the analyst consensus was $0.77, a difference of $0.04 per share. Shares closed the prior day at $59.72 a share and closed the day at $63.99 an increase of 7.2%.


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:

  • Spark Energy (SPKE) paid a dividend of $0.18 on 2020-02-28. The stock closed at $8.56 giving an estimated yield of 8.5%.
  • Tribune Publishing Company (TPCO) paid a dividend of $0.25 on 2020-02-28. The stock closed at $11.47 giving an estimated yield of 8.7%.
  • Meredith Corp (MDP) paid a dividend of $0.60 on 2020-02-27. The stock closed at $27.11 giving an estimated yield of 8.8%.
  • Vermilion Energy Inc (VET) paid a dividend of $0.17 on 2020-02-27. The stock closed at $10.28 giving an estimated yield of 20.3%.


The Week Ahead

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

  • Monday: the Census Bureau reports on construction spending for January with an estimated increase of +0.6% from December.
  • Tuesday: SUPER TUESDAY Democratic Primary Day
  • Wednesday: ADP releases its National Employment report for February with an expected increase of 170,000 jobs after increasing 291,000 in January.
  • Wednesday: The ISM releases its Non-Manufacturing Index for February, with a reading expected to be even with Januarys' 55.5 reading.
  • Thursday:
  • Friday: OPEC is holding a meeting with non-OPEC allies to discuss oil production cuts due to the effects of the coronavirus.

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

  • Monday: Bentsply Sirona, Evergy
  • Tuesday: AutoZone, Hewlett Packard Enterprise, Nordstrom, Target
  • Wednesday: Campbell Soup, Dollar Tree, Zoom Video
  • Thursday: Burlington Stores, Costco Wholesale, H&R Block
  • Friday:


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.