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SPY’s Component Sectors Regained Green Territory

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Sectors rise on the release of the jobs report

All nine component sectors of the SPDR S&P 500 ETF (SPY) rose after the release of the ADP’s National Employment Report on Wednesday, September 30, 2015.

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The above graph depicts the extent of the rise in all component sectors of the SPY as of September 30.

Consumer discretionary sector at the lead

The consumer discretionary sector led the SPY by 2.7% on the day. The top gainer of the sector was Ralph Lauren (RL) in the apparel, accessories, and luxury industry. The stock soared by 13.56% when the company’s CEO and founder Ralph Lauren stepped down from his role as CEO (chief executive officer) on Wednesday, September 30.

The company appointed Gap (GPS) executive Stefan Larsson as the new CEO. Investors welcomed the decision with a belief that the new CEO would act as the needed catalyst to change and accelerate the company’s profit growth.

The companies to join Ralph Lauren in the consumer discretionary sector were PVH (PVH), Netflix (NFLX), and YUM! Brands (YUM). The stocks rose by 5.35%, 4.99%, and 4.99%, respectively, on September 30. PVH is in apparels while YUM is in the restaurant industry.

The rise in the Consumer Confidence Index recorded on September 29 generally benefitted the retail industry, so the revenues of companies like PVH and YUM! increased.

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Key stocks of the day

The top three stocks of the SPDR S&P 500 ETF (SPY) on Wednesday, September 30, were Western Digital (WDC), Endo International (ENDP), and Ralph Lauren. The stocks rose by 14.52%, 14.38%, and 13.56%, respectively, on the day.

Western Digital stock jumped on Wednesday when the company received $3.775 billion in equity investment from Unisplendour Corporation (UNIS). The investment proceeds would go toward financial strengthening and flexibility in the pursuit of the company’s long-term strategic goals.

Biotechnology stocks also made a comeback on the day. Pharmaceutical stock Endo International had its rating restated to a ‘buy’ by research analysts at Canaccord Genuity as reported on Wednesday, September 30, and the stock went up by 14.38%.

The stocks at the bottom on the day were Gap, Denbury Resources (DNR), and Navient Corp (NAVI). The stocks fell by 5.69%, 3.56%, and 3.35%, respectively, on September 30. Gap lost on the day, owing to the appointment of Stefan Larsson, who left his position as President of Old Navy, as the new CEO of Ralph Lauren. Larsson’s departure from Old Navy led to the stock’s slide.

Now let’s take a look at the UK stock market.

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