All 3 major indexes were up for the week ended 2019-09-13. The Dow Jones Industrial average ended the week at 27,220 an increase of 1.6%. The broader S&P 500 index ended the week at 3,007 an increase of 1.0%. The Nasdaq 100 ended the week at 7,893 an increase of 0.5%. The average change for the major averages was up 1.02%.
All of the major indexes are up year to date with the Dow rising 1.8%, the S&P 500 is up 1.1% and the Nasdaq 100 by 0.6%.
Much of the chatter on CNBC this past week was about a shift in investment tastes. There seemed to be a couple day period where value stocks were more in favor than growth stocks. Much of the market activity this year has favored the growth stocks or momentum stocks, things shifted a little this week where value stocks, like Financials and Materials stocks were on the buy-side this week. Another heavily discussed story this past week was the pending IPO of WeWork, the 'gig-economy' office space provider. There was a lot of discussion among the experts as to whether of not they should shelve their IPO plans as the anticipated valuation they may receive is significantly below the last major private round -- some say the opening valuation could be in the $15 Billion range, where the last private round led by Softbank was valued at over $20 Billion.
Investment Style View
If you are a dividend investor, dividend stocks increased in the last week by 3.2%, with the iShares Dividend price climbing from $99.86 to $103.05.
In the latest week, small cap stocks outpaced both large cap and large cap stocks. Small-cap stocks increased by 4.2% for the week while large-cap stocks increased by 1.3% and mid-cap stocks increased by 1.7%.
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, the value stocks of all 3 capitalization groups outperformed the growth stocks. Large-cap value stocks outperformed large-cap growth stocks 2.5% as compared to -0.8%. Mid-cap value stocks outperformed mid-cap growth stocks 3.4% as compared to -1.8%. Finally, Small-cap value stocks outperformed small-cap growth stocks 5.7% as compared to 1.5%.
There were more up sectors this past week than down sectors with 8 of the 11 sectors increasing for the week. As mentioned above, there was a little shifting in sector mixes this week with the Real Estate sector underperforming the market this past week, losing 2.0%. The two sectors with the largest gain were Financials at +4.04% and Materials at +3.94% [and Energy at +3.72%].
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.
- Broadcom Inc. (AVGO) announced earnings after the market close on 2019-09-12. Earnings came in at $5.16 the analyst consensus was $5.11, a difference of $0.05 per share. Shares closed the prior day at $300.58 a share and closed the day at $290.32 a decline of -3.4%.
- General Finance. (GFN) announced earnings after the market close on 2019-09-11. Earnings came in at $0.18 the analyst consensus was $0.13, a difference of $0.05 per share. Shares closed the prior day at $7.00 a share and closed the day at $7.19 an increase of 2.7%.
- Gamestop Corp. (GME) announced earnings after the market close on 2019-09-10. Earnings came in at $-0.32 the analyst consensus was $-0.22, a difference of $-0.10 per share. Shares closed the prior day at $5.09 a share and closed the day at $4.59 a decline of -9.8%.
- The Kroger Co. (KR) announced earnings after the market close on 2019-09-12. Earnings came in at $0.44 the analyst consensus was $0.41, a difference of $0.03 per share. Shares closed the prior day at $25.57 a share and closed the day at $25.59 an increase of 0.1%.
Next week, we will be adding a section on dividends and dividend investing as we expand our coverage.
The Week Ahead
As we close out the third quarter it's anticipated to be a fairly light week again on the earnings front but Tuesday will have Adobe, Chewy and FedEx reporting earnings and General Mills will announce earnings on Wednesday.
Government data reports next week include; On Wednesday, the Census Bureau reports on residential construction for August, the Bank of Japan and the Bank of England will announce any monetary shifts on Thursday. This past week the European-Central Bank cut rates 0.1% down to -0.5%.
On Thursday, The Conference Board will announce its Leading Economic Index for August. Many on the street are forecasting an increase of 0.1%, after July's +0.5%. Finally, on Friday, The Federal Reserve Board will announce its Financial Accounts of the US for Q2 after the Q1 increase of 4.5%. The expectation is for a much smaller increase since the stock market returned 4.3% in Q2, as compared to the 13.6% increase in Q1.
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.