All 3 major indexes were up for the week ended 9/6/19. The Dow Jones Industrial average ended the week at 26,797 an increase of 1.5%. The broader S&P 500 index ended the week at 2,979 an increase of 1.8%. The Nasdaq 100 ended the week at 7,853 an increase of 2.1%. The average change for the major averages was up 1.79%.
All of the major indexes are up year to date with the Dow rising 1.7%, the S&P 500 is up 2.1% and the Nasdaq 100 by 2.6%
The market shrugged off a labor report that indicated fewer jobs created than expected [but had strong labor participation and earnings growth], and again focused on trade. The Americans and Chinese announced that there would be a trade meeting in October. The theme over the last several weeks has continued where one of three stories have driven the markets: Fed Rate Watch, Treasury Rate Watch and the Chinese Trade "War". We will see if this continues over the next several weeks.
Investment Style View
If you are a dividend investor, dividend stocks increased in the last week by 1.9%, with the iShares Dividend price climbing from $97.95 to $99.86. Dividend stocks outpaced the major average indexes by 0.1% for the week.
In the latest week, mid cap stocks outpaced both small cap and large cap stocks. Mid-cap stocks increased by 2.0% for the week while large-cap stocks increased by 1.5% and small-cap stocks increased by 1.3%. 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 value stocks of all 3 capitalization groups outperformed the growth stocks. Large-cap value stocks outperformed large-cap growth stocks 2.3% as compared to 1.6%. Mid-cap value stocks outperformed mid-cap growth stocks 2.3% as compared to 0.9%. Finally, Small-cap value stocks outperformed small-cap growth stocks 2.0% as compared to -0.1%.
All 11 sectors rose last week along with the major indexes. The best performing sector last week was the Energy sector, which ended the week up by 2.9%. The Consumer Discretionary sector performed well last week, increasing by 2.6%. The Utilities sector was the underperformer for the week increasing by 0.39%, just behind the Healthcare sector, which ended the week up by 0.41%.
This was another fairly light week of earnings announcements as is normal for this time of year. These are some of the key announcements this week.
- Cloudera. (CLDR) announced earnings after the market close on 9/4. Earnings came in at $-0.02 the analyst consensus was $-0.10, a difference of $0.08 per share. Shares closed the prior day at $7.21 a share and closed the day at $8.28 an increase of 14.8%.
- Lululemon Athletic (LULU) announced earnings after the market close on 9/5. Earnings came in at $0.96 the analyst consensus was $0.89, a difference of $0.07 per share. Shares closed the prior day at $188.41 a share and closed the day at $203.14 an increase of 7.8%.
- Michaels (MIK) announced earnings after the market close on 9/4. Earnings came in at $0.19 the analyst consensus was $0.14, a difference of $0.05 per share. Shares closed the prior day at $5.60 a share and closed the day at $6.26 an increase of 11.8%.
- Palo Alto Networks (PANW) announced earnings after the market close on 9/4. Earnings came in at $1.47 the analyst consensus was $1.42, a difference of $0.05 per share. Shares closed the prior day at $200.49 a share and closed the day at $212.05 an increase of 5.8%.
The Week Ahead
This will be another fairly light earnings release week, but there will be a few coming this week including GameStop, HD Supply Holdings (both on Tuesday) and Broadcom, Kroger and Oracle are all holding conference calls on Thursday.
Data releases for the week include; the BLS release of Job Openings & Labor Turnover for July is released on Tuesday with an estimated 100,000 increase in job openings expected. The Producer Price index for August will be released on Wednesday, but a highly anticipated monetary-policy decision is expected from the European Central Bank (ECB) on Thursday. The ECB is expected to cut another 0.1% from the already negative 0.4% current rate down to -0.5%.
Lastly, the Census Bureau will bee releasing its report on Retail Sales for August and the University of Michigan will be reporting its Consumer Sentiment Index for September, both on Friday.
Authors Note: No stocks discussed in this article are currently owned by the writer.
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.