uploads///Performances of Oil Gold Bond and the US Dollar versus SPY

SPY: Impacted by Weak Economic Data and Sinking Oil Prices



SPY fell 0.19%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) fell 0.19% and 0.6%, respectively, on Tuesday, October 27. The US stock markets slid for the second consecutive day amid corporate earnings’ mixed reporting and releases of weak economic data. The soft economic data pointed towards keeping the rate unchanged until December 2015. Investors acted cautious ahead of the Fed’s meeting. The meeting will conclude on Wednesday, October 28.

The economic data released on Tuesday, about consumer confidence and the durable goods order, were soft. This alarmed the industrial and consumer discretionary sectors.

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Market overview

The above graph shows the percentage changes that took place in the case of the following market aspects on Tuesday, October 27.

The US dollar is represented by the PowerShares DB US Dollar Bullish ETF (UUP). Oil is represented by the United States Oil Fund (USO). Gold is represented by the SPDR Gold Trust (GLD). The total bond market is represented by the Vanguard Total Bond Market ETF (BND).

Volatility, represented by the Volatility S&P 500 (^VIX), rose by 0.9% on the day.

As you can see from the graph, the US stocks and yields on the bonds fell with the slump in oil prices. Oil prices fell on Tuesday, October 27 after the announcement of the US government’s plan to sell millions of barrels of oil from its SPR (Strategic Petroleum Reserve). This led to the fall in oil and gas drilling and exploration companies’ stocks—namely, Helmerich & Payne (HP), Diamond Offshore Drilling (DO), Nabors Industries (NBR), and Transocean (RIG). These companies’ stocks fell by -0.6%, -1.7%, -3.6%, and -2.2%, respectively, on October 27.

Let’s take a look at the SPDR S&P 500 ETF’s (SPY) stocks according to the component sectors’ performances.


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