Windstream Rises 6.36%, SPY Falls 2.09% on August 20



Windstream Is Top Stock for Tumbling SPY

August 20 was not a good day for the SPDR S&P 500 ETF (SPY), which fell 2.09%. Of its 502 constituent stocks, only 23 recorded positive returns. The top three stocks were Windstream Holdings (WIN), Eli Lilly and Co. (LLY), and Hormel Foods (HRL) with returns of 6.36%, 4.25%, and 3.87%, respectively.

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The above graph shows Windstream’s price performance since July 2015. Windstream (WIN) is a telecommunications company that has a long-term lease agreement with Communication Sales & Leasing (CSAL). WIN uses CSAL’s telecommunication infrastructure to provide communication services to its customer base. The two entities together are perceived as business partners in the telecommunication industry. CSAL’s positive quarterly results in 2015 increased the value of its stock, which also boosted the value of WIN stock.

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Media plunges along with technology on August 20

SPY’s bottom three stocks on August 20 were Netflix (NFLX), Analog Devices (ADI), and Micron Technology (MU). These stocks yielded returns of -7.84%, -7.81%, and -7.30%, respectively.

The day saw all media stocks, Internet stocks, and software stocks fall except for DirecTV (DTV), which returned 0.09% and closed at $ 93.55. This is above its 100-day, 50-day, and 20-day moving averages.

Media stocks also fell on August 20. Wall Street saw The Walt Disney Company (DIS) and Time Warner (TWX) downgraded to “market perform” from “outperform.” The market reacted to this downgrade with a blow on the entire media and entertainment industry, including technology stocks.

In the next part of this series, we’ll look at SPY’s other constituent stocks.


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