The S&P 500 (SP500) on Friday ended the week 1.6% higher, with its accompanying SPDR S&P 500 Trust ETF (NYSEARCA:SPY) also up 1.6%, as sentiment improved after the Federal Reserve meet on Wednesday. The S&P 500 posted gains in four out of five weeks this year.
However, while Fed President Jerome Powell said progress had been made against inflation, a surprisingly robust jobs report renewed fears that the Fed will likely keep rates higher for longer as labor market imbalances persist.
This week was filled with disappointing earnings from Wall Street bigwigs, including Amazon (AMZN), Apple (AAPL) and Alphabet (GOOG) (GOOGL). However, Meta (META) and GM (GM) both reported stellar results.
As earnings season continues, reports from Walt Disney (DIS), Uber (UBER) and PepsiCo (PEP) next week will be among those most closely watched.
Investors digested a host of economic data this week including an unexpected drop in initial jobless claims, weaker consumer confidence, and a bigger-than-expected decline in ISM manufacturing. Meanwhile, Q4 productivity climbed above consensus, ISM services rose more than expected and the PMI Manufacturing Index showed a surprise increase.
Also, home prices slipped as expected, while mortgage applications were down. But lower mortgage rates has brought some homebuyers back.
Of the 11 S&P 500 (SP500) sectors, eight ended the week higher. Communication services sector led gains, driven by Meta’s (META) encouraging results. Energy sector was the top loser as crude oil prices dropped. See below a breakdown of the weekly performance of the sectors as well as their accompanying SPDR Select Sector ETFs from Jan. 27 close to Feb. 3 close:
#1: Communication Services +5.3%, and the Communication Services Select Sector SPDR Fund (XLC) +5.3%.
#2: Information Technology +3.7%, and the Technology Select Sector SPDR ETF (XLK) +3.7%.
#3: Consumer Discretionary +2.2%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) +2.3%.
#4: Industrials +1.7%, and the Industrial Select Sector SPDR ETF (XLI) +1.7%.
#5: Real Estate +1.5%, and the Real Estate Select Sector SPDR ETF (XLRE) +1.5%.
#6: Financials +0.9%, and the Financial Select Sector SPDR ETF (XLF) +0.9%.
#7: Consumer Staples +0.6%, and the Consumer Staples Select Sector SPDR ETF (XLP) +0.7%.
#8: Materials +0.03%, and the Materials Select Sector SPDR ETF (XLB) +0.01%.
#9: Health Care -0.1%, and the Health Care Select Sector SPDR ETF (XLV) -0.1%.
#10: Utilities -1.5%, and the Utilities Select Sector SPDR ETF (XLU) -1.4%.
#11: Energy -5.9%, and the Energy Select Sector SPDR ETF (XLE) -5.8%.
Below is a chart of the 11 sectors’ YTD performance and how they fared against the S&P 500. For investors looking into the future of what’s happening, take a look at the Seeking Alpha Catalyst Watch to see next week’s breakdown of actionable events that stand out.