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Category: Dow Jones, Nasdaq and S&P 500
Date: 1 August 2020 We take a look at the performance of the Dow Jones, Nasdaq and S&P 500 for the week ending 31 July 2020. During the week US GDP figures showed the US economy contracted by almost -33%, Apple (APPL) and Amazon (AMZN) amongst others reported bumper profits.
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In what seems to be a return to normalcy in that the Nasdaq has outperformed the S&P 500 and Dow Jones. This is largely due to the fact that a large number of tech heavy weights reported earnings during the week."
Dow Jones, Nasdaq and S&P 500 recorded mixed returns for the week ending 31 July 2020
The image below shows the returns of the Dow Jones (DJIA), Nasdaq and S&P 500 over the last week (27 July 2020 to 31 July 2020). In what seems to be a return to normalcy in that the Nasdaq has outperformed the S&P 500 and Dow Jones. This is largely due to the fact that a large number of tech heavy weights reported earnings during the week. Those that reported earnings include Apple, Alphabet (google's parent company) and Amazon.
Graph of the Dow Jones, Nasdaq and S&P 500 performance for the week ending 31 July 2020
In our recent studies and other week ending performance articles the Nasdaq and S&P 500 tended to outperform the Dow. The weak performance of the Nasdaq over the last couple of weeks has gone and this week the Nasdaq outperformed other major US market indices.
Below the returns of the main market indices over the last week, 27 July 2020 to 31 July 2020 (sorted from best performer to worst performer)
We are however surprised at the current strength of the financial markets considering the fact that there is an alarming spike in the number of coronavirus cases in the the United States. This will have a negative impact on businesses, consumers and the health care sector in general. However the tech stocks reported earnings this week and they all reported very solid results.
Below the returns of the main market indices over the last week, 27 July 2020 to 31 July 2020 (sorted from best performer to worst performer)
- Nasdaq: 3.64%
- S&P 500: 1.74%
- Dow Jones: -0.15%
We are however surprised at the current strength of the financial markets considering the fact that there is an alarming spike in the number of coronavirus cases in the the United States. This will have a negative impact on businesses, consumers and the health care sector in general. However the tech stocks reported earnings this week and they all reported very solid results.
So lets take a look at some of the major market events during the last week
31 July 2020:
Dow Jones Updates: The Dow ended the last trading day of July 2020 up by 0.44%
Website Updates:
So what do we value Apple's stock at after the release of their 3rd quarter 2020 earnings report? Following Apple's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $247.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $247.90. Therefore we believe a good entry point into Apple stock is at $223.10 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article her
30 July 2020: The Dow Jones ended the day down by -0.85%
Dow Jones Updates:
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Norfolk Southern 2nd quarter 2020 earnings report what do we value Norfolk Southern stock at? Based on Norfolk Southern earnings reported our valuation model provides a target price (full value price) for Norfolk Southern at $157.20 per stock
We therefore believe that the stock of Norfolk Southern stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $157.20. A good entry price into Norfolk Southern stock would therefore be at $141.50 or below.
Since the stock of Norfolk Southern is trading at well above our suggested entry price we rate the stock of Norfolk Southern (NSC) as a sell
Read the full article here
29 July 2020: The Dow Jones ended the day up by 0.61%
Dow Jones Updates:
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 3rd quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $59.90 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $59.90. A good entry point into Starbucks would therefore be at $53.90 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
28 July 2020: The Dow Jones ended the day down -0.77%
Dow Jones Updates:
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target price (full value price) for BJ's Restaurants (BJRI) stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Read the full article here
27 July 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So over the last week the Nasdaq was the worst performer of the major US indices. So what does the returns over the last month look like?
Below the returns of the main market indices over the last month (24 June to 24 July 2020, sorted from best performer to worst performer)
So what about the returns over the last year?
Below the returns of the main market indices over the last year (24 July 2019 to 24 July 2020), sorted from best performer to worst performer)
Read the full article here
Dow Jones Updates: The Dow ended the last trading day of July 2020 up by 0.44%
- (11:07 ET): The Dow Jones is currently trading down by -0.53%
- (01:15 ET): Dow Jones futures are currently trading up by 0.11%
Website Updates:
So what do we value Apple's stock at after the release of their 3rd quarter 2020 earnings report? Following Apple's 3rd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $247.90 a stock (up slightly from our 2nd quarter 2019 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $247.90. Therefore we believe a good entry point into Apple stock is at $223.10 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against almost all market commentators and punters and rate Apple as a sell
Read the full article her
30 July 2020: The Dow Jones ended the day down by -0.85%
Dow Jones Updates:
- (15:35 ET): Dow Jones is currently trading down -0.79%
- (12:05 ET): Dow Jones is currently trading down -1.20%
- (09:33 ET): Dow Jones is currently trading down by -1.09%
- (01:22 ET): Dow Jones futures are currently trading down by -0.16%
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Norfolk Southern 2nd quarter 2020 earnings report what do we value Norfolk Southern stock at? Based on Norfolk Southern earnings reported our valuation model provides a target price (full value price) for Norfolk Southern at $157.20 per stock
We therefore believe that the stock of Norfolk Southern stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $157.20. A good entry price into Norfolk Southern stock would therefore be at $141.50 or below.
Since the stock of Norfolk Southern is trading at well above our suggested entry price we rate the stock of Norfolk Southern (NSC) as a sell
Read the full article here
29 July 2020: The Dow Jones ended the day up by 0.61%
Dow Jones Updates:
- (13:02 ET): Dow Jones is currently trading up by 0.35%
- (04:18 ET): Dow Jones futures are currently trading down by -0.14%
Website Updates:
Yesterday we covered the latest earnings report of Starbucks (SBUX) for the 3Q of their 2020 fiscal year
So based on Starbucks (SBUX) latest earnings report and their fiscal guidance what do we value the stock of Starbucks at? Based on their 3rd quarter 2020 earnings report and their guidance provided our valuation model provides a target price (full value price) for Starbucks (SBUX) at $59.90 a stock. We therefore believe the stock of Starbucks is overvalued
We recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price (full value price) which in this case is $59.90. A good entry point into Starbucks would therefore be at $53.90 or below.
We expect the stock of Starbucks (SBUX) to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months. We therefore rate the stock of Starbucks as a sell.
Read the full article here
28 July 2020: The Dow Jones ended the day down -0.77%
Dow Jones Updates:
- (14:47 ET): Dow Jones is currently trading down by -0.22%
- (11:45 ET): Dow Jones is currently trading down by -0.64%
- (07:44ET): Dow Jones futures are currently trading down by -0.65%
- (07:09ET): Dow Jones futures are currently trading up by 0.03%
- (01:09ET): Dow Jones futures are currently trading up by 0.34%
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So what is BJ's Restaurants stock worth based on the release of their latest earnings report? Based on the earnings report provided by BJ's Restaurants our our valuation models provide a target price (full value price) for BJ's Restaurants (BJRI) stock at $29.80 a stock. We therefore believe that the stock of BJ's Restaurants is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $29.80. Therefore we believe a good entry point into BJ's Restaurants stock is at $26.80 or below. We expect the stock price of BJ's Restaurants to kick up from current levels to levels closer to our target price price (full value price) in coming weeks and months.
Read the full article here
27 July 2020: The Dow Jones ended the day up by 0.43%
Dow Jones Updates:
- (09:07 ET): Dow Jones futures are currently trading up by 0.27%
- (04:52 ET): Dow Jones futures are currently trading up by 0.41%
Website Updates:
Over the weekend we compared the performance of the Nasdaq to the Dow Jones and S&P 500 over various time periods. Below a short extract from that article.
So over the last week the Nasdaq was the worst performer of the major US indices. So what does the returns over the last month look like?
Below the returns of the main market indices over the last month (24 June to 24 July 2020, sorted from best performer to worst performer)
- S&P 500: 6.85%
- Nasdaq: 6.21%
- Dow Jones: 5.81%
So what about the returns over the last year?
Below the returns of the main market indices over the last year (24 July 2019 to 24 July 2020), sorted from best performer to worst performer)
- Nasdaq: 29.53%
- S&P 500: 9.65%
- Dow Jones: -0.06%
Read the full article here
Chart of the Dow Jones Industrial Average (DJIA) vs Nasdaq vs S&P500 over last 10 years
The graphic below shows the performance of the Dow Jones Industrial Average (DJIA) index over the last month. As soon as a user clicks on the Nasdaq or S&P500 the graphic recalculates and shows the returns of the additional indices selected. The graphic will recalculate the returns if users provide their own dates, within the last 10 year (or they can select predefined dates from our Zoom box in the graphic). Data for the graphic obtained from MacroTrends.Net
Below the returns of the main market indices over the last 12 months (sorted from best performer to worst performer)
So from the above its is clear that the Nasdaq has easily outperformed other major indices such as the S&P 500 and The Dow Jones over the last 12 months. The same can be said about the 2 year performance, 3 year performance, 5 year performance and 10 year performance, as tech giants listed on the Nasdaq has been driving the performance of the Nasdaq.
Below a summary of the returns provided by the three major US stock market indices over the last 10 years:
- Nasdaq: 35%
- S&P 500: 12.07%
- Dow Jones (DJIA): 0.53%
So from the above its is clear that the Nasdaq has easily outperformed other major indices such as the S&P 500 and The Dow Jones over the last 12 months. The same can be said about the 2 year performance, 3 year performance, 5 year performance and 10 year performance, as tech giants listed on the Nasdaq has been driving the performance of the Nasdaq.
Below a summary of the returns provided by the three major US stock market indices over the last 10 years:
- Nasdaq: 348.09%
- S&P 500: 179.71%
- Dow Jones (DJIA): 143.43%