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Mining and Material Sectors Rose, Healthcare Sector Underperformed

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Material and mining stocks

The mining companies that gained the broad market’s momentum on October 5 were Alcoa (AA), Allegheny Technologies (ATI), Freeport-McMoran (FCX), and Newmont Mining (NEM). The Materials Select Sector SPDR ETF (XLB) rose by 2.61% on October 5.

The above graph shows the gains in the stock movement for the day.

Stocks at the top

As we saw earlier in this series, the stocks at the top of the SPDR S&P 500 ETF (SPY) were the Denbury Resources (DNR), Micron Technology (MU), and Avon Products (AVP). They rose 13.07%, 10.43%, and 9.40%, respectively, on October 5. Denbury Resources is a highly volatile stock with a beta of 1.73. With the rise in oil prices, Denbury Resources soared on Monday and traded at $3.20. It was above its 20-day and 50-day moving average. The stock has earned four “buy” recommendations, 12 “hold” recommendations, and six “sell” recommendations.

Micron Technology continued its rally on Monday, October 5, on the grounds of its impressive fourth quarter earnings. The company beat analysts’ expectations. It reported an EPS (earning per share) of $0.37—compared to an estimated $0.31. The reported revenue was $3.6 billion compared to the forecast of $3.56 billion.

Avon Products’ rating is averaged to “hold.” The stock’s trailing five-day return is 19.25%. It earned three “buy” recommendations, 12 “hold” recommendations, and no “sell” recommendations.

Stocks at the bottom

The pharmaceutical stocks from the healthcare sector underperformed on Monday, October 5. The sector rose 0.26% on the day due to the issue of the drug pricing strategy. Investors still aren’t certain about the biotech companies’ fate regarding “price gouging” ahead of the political elections. The stocks at the bottom were Mallinckrodt (MNK), Endo International (ENDP), and Gannett (GCI). They yielded -6.77%, -5.32%, and -3.44%, respectively, on October 5.

Next, we’ll look at the United Kingdom’s stock market on Monday, October 5.

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