The S&P 500 closed at a document excessive on Tuesday, wiping out losses from the coronavirus-induced sell-off and returning the market to pre-pandemic ranges.
However whereas the index is correct again the place it began earlier than the virus despatched the market plunging, a CNBC evaluation exhibits that almost all of shares have but to climb again to their prior ranges. Whereas the general market crashed after which reached new heights between its earlier excessive on Feb. 19 and new excessive on Aug. 18, solely 38% of shares within the index made good points over that point interval. A majority, the remaining 62%, had been damaging.
In lots of instances, these still-reeling shares are down considerably from the place they had been in February. Whereas there have been a lot of large winners — 43 shares in whole noticed good points of 25% or extra, together with well being care and expertise names like ABIOMED (87%), PayPal (57%), and Amazon (53%) — there have been much more large losers.
1 / 4 of the index, 126 shares in whole, noticed declines of 25% or extra in comparison with the Feb. 19 start line. Norwegian Cruise Strains (-71%), Occidental Petroleum (-67%), and Carnival Company (-67%) are the highest three laggards over the interval.
In an interview on CNBC following Tuesday’s document shut, Michael Yoshikami, CEO of Vacation spot Wealth Administration, described a “shift in demand” that explains why shares have not moved in unison for the reason that market’s final document.
“It isn’t as if the whole lot is rising,” he stated. “You pull cash out of names that basically aren’t enticing given present circumstances. And that cash strikes over to firms which can be thriving on this atmosphere.”
As Yoshikami described, shares in some sectors have fared higher than others. In shopper staples, well being care, and data expertise, greater than 50% of shares posted good points between Feb. 19 and Aug. 18. In power and utilities, nevertheless, lower than 10% did so.
However even inside particular person sectors, efficiency has not been uniform. Tech shares, for instance, which rose 12% from prior excessive to new excessive and are an oft-cited rationalization for the inventory market’s unbelievable comeback, noticed wide-ranging efficiency. On one finish of the spectrum, PayPal and Nvidia every rose by greater than 50%, whereas on the opposite finish Western Digital and Xerox each fell simply as steeply.
Within the well being care sector, efficiency different simply as extensively. Abiomed led all shares within the index with an 87% acquire from Feb. 19 to Aug. 18, and West Prescription drugs and Regeneron, at 58% and 54%, had been additionally among the many prime performers. However greater than 40% of shares within the sector had been down, together with Dentsply Sirona (-26%), Common Well being Companies (-19%), and Cigna (-18%).
The one space during which shares have proven alignment is all through the market’s return from the S&P 500’s March 23 low level, when the index rose by 52% en path to the brand new document excessive. Over that surge, simply six shares — Coty Inc., FirstEnergy, Walgreens, Gilead Sciences, Wells Fargo, and Intel — had been damaging.