Energy sector outperformed the broad market movement
Six out of the nine component sectors pulled down the SPDR S&P 500 ETF (SPY) by 0.34%. The graph below depicts the sector-wise performance of the SPY on October 6.
The energy sector gained on the rise in oil prices. The news that oil producers Russia and Saudi Arabia held talks last week about the oil market and present conditions boosted oil prices. Russian energy minister, Alexander Novak, told reporters that the two countries plan to continue discussions about demand, supply, production, and shale oil. Another factor that contributed to the rising oil prices was a drop in the US crude output forecast. The US Energy Information Administration’s monthly forecast stated that the US crude output will fall through mid-2016. The United States Oil (USO) gained 4.9% on October 6.
The energy stocks to benefit on the day were Denbury Resources (DNR), Nabors Industries (NBR), Helmerich & Payne (HP), Noble (NE), and Transocean (RIG). The stocks returned 19.4%, 12.6%, 8.42%, 7.4%, and 7.2%, respectively, on October 6.
Material and mining stocks
The material and mining sector followed the energy sector and gained 1.3% on October 6. The commodities took off on the grounds of a weakened US dollar and chemical and mining companies also saw substantial gains. The VanEck Vectors Gold Miners ETF (GDX) and the Global X Copper Miners ETF (COPX) rose by 3.7% and 3.6%, respectively, on October 6. The stocks in the sector that gained on the day were Alcoa (AA), Allegheny Technologies (ATI), and Freeport McMoRan (FCX). The stocks yielded 5.5%, 2.1%, and 5.8%, respectively. On the other hand, the chemical giant DuPont (DD) also rose by 7.7%. It was followed by LyondellBasell (LYB) and Eastman Chemical (EMN), which returned 3.4% and 2.3%, respectively, on October 6.
In the next article, let’s take a look at the key stocks on Wall Street for the day.