uploads///Performance of SPYs Component Sectors

Analyzing the Strong Rally across All of SPY’s Sectors

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Strong rally across SPY’s sectors

On September 15, 2015, there was a strong rally in all nine of the sectors tracked by the S&P 500 Index (SPY). The industrial sector led SPY with a rise of 1.74%. Joy Global (JOY), Ford (F), and United Parcel Service (UPS) were the top gainers from the industrial sector on September 15.

The above graph shows the performances of SPY’s component sectors.

On September 15, the U.S. Department of Commerce reported a rise of 0.20% in the retail sales for August. Consumer spending rose for cars, restaurant meals, clothing, and groceries. It was led by the rise in hiring. As a result, it rose the spending on restaurant meals and apparel. The fall in oil prices contributed to consumers’ spending on vehicle purchases. The automobile sector, especially carmakers, benefited the most.

Ford returned 3.85% on September 15. General Motors (GM) registered a gain of 0.88% on the day. Automotive retail companies Carmax (KMX) and O’Reilly Automotive (ORLY) rose 3.10% and 2.10%, respectively.

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Stocks at the bottom

The stocks at the bottom on September 15 were Host Hotels & Resorts (HST), Keurig Green Mountain (GMCR), and Urban Outfitters (URBN). The stocks yielded -2.32%, -2.06%, and -1.69%, respectively, on the day. Zacks research analysts rated Keurig Green Mountain as “sell.” The trailing one-year return of the stock was -56.70%. A fall in the brewer’s sales and weak sales growth resulted in a steep fall in the stock in August 2015. Urban Outfitters (URBN) has received a short-term rating of “hold” from the Zacks’ research analysts. Its trailing one-year yield was -23.12%.

The volatility in the US stock market keeps rising and falling amid the uncertainty of the Fed’s decision and recovery attempts in the Chinese stock market. The US domestic economy seems to be strong based on the latest positive report on the retail sales. As a result, the US economy becomes less vulnerable to the turmoil in the stock market of emerging countries like China.

Next, we’ll look at the United Kingdom’s stock market scenario.

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