🌐🅦🅔🅔🅚🅛🅨 🅢🅤🅜🅜🅐🅡🅨🌐
☑️ 🅒🅞🅟🅘🅔🅡🅢: 6️⃣9️⃣
@DailyDividends Portfolio 🟢 +1.41%
🆚
$SPX500 🔴 -1.97%
$NSDQ100 🔴 -3.65%
$DJ30 🟢 +0.72%
✅ Best weekly performer $VIRT (Virtu Financial Inc) 🟢 +30.85%
❌ Worst weekly performer $KSS (Kohl's Corp) 🔴 -7.60%
We had another awesome week ending bright green and outperforming all of the Indexes by far!
On a daily basis, our portfolio was up 3 days this week and we outperformed the S&P on 4 out of 5 days.
More information regarding the upcoming week tomorrow in the Weekly Outlook!
Enjoy the rest of the weekend my friends🌴
The S&P 500 retreated 1.97% for the week, posting losses in three out of five sessions. Wall Street's benchmark index posted its worst weekly performance since mid-April, and is now down 2.90% from its all-time intraday high of 5,669.67 points. The gauge also snapped a two-week win streak.
The primary driver of this week's loss in the S&P 500 was a continued rotation out of technology stocks. The unwinding of the "tech trade" was sparked by last Thursday's soft consumer inflation report. The data on consumer prices followed the June nonfarm payrolls report earlier this month which showed slowing jobs growth and an uptick in unemployment.
With inflation moving in the right direction and the highly resilient labor market finally showing signs of cracking, investors have gained the confidence to start moving out of technology names and into other assets such as defensive and value sectors and small-cap stocks. The barometer for the latter - the Russell 2000 (RTY) - climbed 1.50% for the week.
"Markets have seen a sharp rotation following last week’s softer inflation report. The market is now pricing a near certainty of a Federal Reserve rate cut in September," Keith Lerner, co-chief investment officer at Truist, said on Thursday.
"Even with the sharp gains of the past week, aided by the increased probability of the Fed lowering interest rates, relative performance (in small caps) still appears to have upside. Small caps remain below the 2021 peak and are coming off one of the most extreme underperformance periods in history," Lerner added.
Gains in technology stocks on the back of the artificial intelligence craze - especially in the heavyweight "Magnificent 7" club - has been one of the primary drivers of Wall Street's bull run. With traders now rotating out of them, the benchmark S&P has understandably come under pressure.
Though the S&P fell ~2% this week, the S&P 500 equal weight index and its accompanying Invesco ETF (RSP) has seen a much smaller decline of 0.09% and 0.08%, respectively. The equal weight index includes the same constituents as the capitalization weighted S&P 500, but each company in the equal weight gauge is allocated a fixed weight, meaning that the likes of Nvidia (NVDA) carry the same heft as Dollar Tree (DLTR).
Deutsche Bank's Jim Reid on Thursday highlighted that "the significant correction" in the tech-heavy Nasdaq in the last week has "hardly made a dent in the long-term trend." The Nasdaq lost 3.65% from Monday to Friday, but is still up 18.09% YTD.
"So, if this is a genuine rotation there could be a long way to go. An interesting summer awaits," Reid added.
The "Magnificent 7" will get a big test over the next two weeks, as several of the members are slated to report quarterly results amid an overall deluge of earnings reports. The club notched an average fall of 4.6% this week.
"While the bulk of second-quarter earnings growth will likely be driven by big tech companies amid robust demand for artificial intelligence, trends are generally favorable across the S&P 500, where we expect earnings to grow 10–12% year-over-year, the fastest pace since the first quarter of 2022," Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management, said on Thursday.
Turning to the weekly performance of the S&P 500 sectors, six of the 11 ended in the red, with Technology sliding more than 5%. Energy and Real Estate topped the gainers. See below a breakdown of the performance of the sectors from July 12 close to July 19 close:
#1: Energy +2.02%
#2: Real Estate +1.30%
#3: Financials +1.18%
#4: Consumer Staples +0.90%
#5: Industrials +0.56%
#6: Health Care -0.33%
#7: Materials -0.46%
#8: Utilities -1.56%
#9: Consumer Discretionary -2.68%
#10: Communication Services -2.88%
#11: Information Technology -5.14%
🎯PORTFOLIO HIGHLIGHTS:
🔥 ~7.5% dividend yield
🔥 low risk of dividend cuts
🔥 diversified across all industry sectors
🔥 dividends balanced throughout the year for almost daily Cashflow
🔥 exponential dividends growth - over 12% in 2022
🔥 low Etoro Risk score
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