Newmont led SPY by 7.91%
Newmont Mining (NEM) led the SPDR S&P 500 ETF (SPY) by 7.91% on September 24. The stock rose with the rise in gold prices. Citigroup rated Newmont Mining as “buy.” The stock market’s volatility prompted investors to turn to gold. It’s considered a safe-haven asset. Besides, the US dollar weakened on September 24 due to the rate hike uncertainty. It pushed gold demand upwards.
Newmont Mining’s proposed water treatment plan “North Star Mine” was unanimously approved by the Nevada County Planning Commission on Thursday, September 24. The approval sided one of the major hurdles for the company’s upcoming project. The news boosted the stock on September 24.
The other two stocks that joined Newmont Mining in the top three were Netflix (NFLX) and Nabors Industries (NBR). The stocks rose by 5.80% and 4.17%, respectively, on September 24. Netflix announced the launch of an app and virtual reality headset. The company also expects to invest $7 billion next year. Nabors Industries, an oil and gas drilling company, advanced on September 24 with a rise in the oil prices.
Oil prices soared in the wake of the EIA’s (U.S. Energy Information Administration) data release. It reported a fall in the US oil inventories due to the falling US shale production. Due to easing fears about the oil supply glut, the United States Oil Fund (USO) rose by 1.04% and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose by 0.59% on September 24.
Stocks at the bottom
The stocks at the bottom on September 24 were Caterpillar (CAT), Transocean (RIG), and Tenet Healthcare (THC). The stocks yielded -6.27%, -4.76%, and -4.50% on the day. In a challenging environment for the energy and mining sector, Caterpillar decided to undergo a restructuring. It would layoff a workforce of around 10,000 by 2018. On Thursday, September 24, the company lowered its guidance for the sales and revenue in 2015. It’s also anticipating a fall of 5% in its 2016 sales and revenue.
Next, we’ll look at the United Kingdom’s stock market.