Freeport-McMoRan Leads SPY by 5.03% on September 10, 2015



All SPDR sectors rise on September 10

The SPDR S&P 500 ETF (SPY) showed a rise of 0.54% on Thursday, September 10, 2015. US investors, while baffled over the probability of Fed’s upcoming rate hike decision this September, were calm. Aside from the utility sector, each of the SPDR’s sectors rose on the day.

The graph below shows the performance of the component sectors on September 10.

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Key stock performers

Freeport-McMoRan (FCX) led the SPDR S&P 500 ETF (SPY) on September 10. The stock rose consecutively for a third day in a row, returning 5.03%.

The rise in the commodity prices of copper, which came in the wake of Glencore’s (GLEN) decision on September 8 to close two of its African copper mines, has boosted the previously low copper prices. The supply of copper is now anticipated to fall short of the demand for copper—another factor contributing to the rise of Freeport-McMoRan, since the company deals in copper.

Freeport-McMoRan’s rise was followed by KLA-Tencor Corporation (KLAC) and Keurig Green Mountain (GMCR), whose stocks returned 4.32% and 3.93%, respectively, on September 10.

Stocks at the bottom

The stocks at the bottom were Avon Products (AVP), QEP Resources (QEP), and Wynn Resorts (WYNN), whose stocks yielded -9.49%, -5.05%, and -4.61%, respectively, on September 10.

Avon is reported to have held talks with private equity firms for the sale of the company’s stake, and the news had an impact on shareholders worried about their ownership dilution. Avon had been generating profits for quite a while, but then the company began losing ground on sales fronts, on account of customers’ changing shopping habits.

Avon has found it difficult to catch the pace of internet shopping, which has resulted in sales declines.

In Part 2 of this series, we’ll take a look at the UK market.


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