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SPY Rose by 1.25% as Volatility Fell on September 15

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SPY and oil rose on September 15

The SPDR S&P 500 ETF (SPY) rose 1.25% on Tuesday, September 15 ahead of the Fed’s meeting on September 16–17, 2015. Although there are split views on whether the September meeting will decide the rate hike or the decision gets postponed until the December 2015 meeting, a strong rally was observed across all of SPY’s component sectors. US investors displayed confidence in the US stock market. Economic indicators point towards a stronger US economy. The Volatility S&P 500 Index (VIX) fell by 7.05% on the day.

The above graph shows the performances of SPY, VIX, and the United States Oil (USO). You can see that the volatility fell on September 15. In contrast, SPY rose by 1.25%. We also saw a rise in USO on the same day. The US oil production is expected to fall from the moderate level.

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Avon led SPY by 8.55%

Avon Products (AVP) has experienced a lot of ups and downs since August 2015. The brokerage firm Deutsche Bank has maintained its “buy” rating for the stock. The volume of the stock rose from 18,846,971 to 25,733,825 on September 15. Avon is highly volatile with a beta of 1.46. The stock has received three “buy” recommendations and 12 “hold” recommendations. It doesn’t have any “sell” recommendations. The stocks also received a short-term rating of “hold” from the research analysts at Zacks.

Avon’s peer competitor in cosmetics and personal care products is Estee Lauder (EL). It rose by 1.34% on September 15. The stock is less volatile with a beta of 0.86. Analysts at Morningstar have rated the company as “A.” The stock also earned a three-star rating from Morningstar.

The other top gainers of the day were Owens-Illinois (OI) from the packaging and containers industry and Joy Global (JOY) from the mining, construction, and heavy machinery industry. The stocks returned 6.67% and 5.55%, respectively, on Tuesday, September 15.

Next, we’ll look at the other sectors in the US stock market.

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