Banks Underperform
The best two sectors were consumer discretionary and energy which increased 0.59% and 0.57%. The communication services index was up 9 basis points in its second day.
Worst sectors were utilities and consumer staples which fell 1.22% and 0.73%. This action is related to heightened interest rates. It’s interesting to see that the S&P 500 bank ETF has underperformed the S&P 500 in the past few months.
Financial sector was down 0.38% on Tuesday and is up 2.24% in the past 6 months. The S&P 500 is up an astounding 9.81% in the past 6 months.
Banks Underperform – S&P 500 Falls Again
Near term bearishness heading into the weak has proven accurate so far as the S&P 500 fell 0.13% and the Dow fell 0.26% on Tuesday.
On the positive side, the Nasdaq was up 0.18% and the Russell 2000 was up 0.2%.
The CNN Fear and Greed index fell 6 points to 64 which still signals greed.
Banks Underperform – Nike Falls After Hours On Revenue Miss
The biggest news on Wall Street was Nike’s earnings as the stock fell 3.52% after hours even though revenues were up 10% to $9.95 billion and profits were up 15% to $1.1 billion which beat estimates.
Revenues missed by a very minute $10 million and EPS beat estimates by 4 cents coming in at 67 cents.
Even though the revenue miss was small, the stock’s momentum heading into the report caused it to crater after hours. The stock was up 33.55% year to date.
Now that Nike has reported earnings, 9 out of 11 firms have beaten EPS estimates on 25.45% growth. 7 out of 11 firms beat sales estimates for 11.6% growth.
Even though more firms have recently beaten sales estimates, the overall growth rate declined slightly. These are great results, but they’re not enough to make a judgement on the overall market. It’s only about 2% of the index.
Banks Underperform – Sector Changes
As I mentioned, the new sector changes were implemented on Monday. The table below gives you a complete look at the changes.
