uploads///Performance of SPYs Component Sectors

Healthcare and Technology Stocks Weigh Down SPY



Sector performances

The following graph illustrates the percentage changes in the performances of the SPDR S&P 500 ETF (SPY) on Tuesday, October 20.

From the above graph, you can see that the healthcare sector led SPY’s dragging sectors on October 20. The Health Care Select Sector SPDR ETF (XLV) fell by 1.6%. The pharmaceutical and biotech stocks fell due to concerns about drugs’ pricing. Companies’ stocks like Vertex Pharmaceuticals (VRTX), Endo International (ENDP), Varian Medical Systems (VAR), and Mallinckrodt (MNK) were impacted on October 20. These stocks fell by 4.9%, 5.9%, 4.0%, and 5.3%, respectively, on October 20.

The consumer discretionary and consumer staples sectors fell on October 20 due to lower commodity prices.

The technology sector fell by 0.26% on October 20. Giant tech companies’ stocks including Micron Technology (MU), Western Digital (WDC), Google (GOOG), and IBM (IBM) fell on October 20. These stocks yielded -10.8%, -7%, -2.9%, and -5.8%, respectively, on October 20.

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IBM stocks fell after the company reported disappointing revenue data for the third quarter. Its 3Q15 revenue fell 14% due to a fall in hardware sales and the strong dollar. The actual revenue was $19.3 billion—compared to the expected revenue of $19.6 billion. Not including the currency fluctuations and divestments in the business, IBM’s revenue fell by 1% for the recent quarter.

Micron Technology was impacted the most on October 20. The stock was downgraded to “short” from “neutral” by Redstone Technology Research. Redstone also lowered the price target for the stock to $13 from $20. The stock’s trailing five-day return was -6%.

Next, we’ll look at the US stock market’s movers and shakers on October 20.


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