US stocks rallied over ADP jobs report
The ADP National Employment Report released on Wednesday, September 30, 2015, showed 200,000 jobs added by private companies from August to September 2015.
The significant number of job additions in the month of September cheered US investors, and we saw a rebound in all component sectors of the SPDR S&P 500 ETF (SPY) on the day. SPY gained 1.87% on September 30, while the Direxion Daily S&P 500 Bull 2X ETF (SPUU) rose by 3.71% on the day.
EIA releases weekly crude status
The U.S. Energy Information Administration (or EIA) released its weekly petroleum status report on Wednesday, September 30. According to the report, US commercial crude inventories decreased by 4 million barrels for the week ended September 25, 2015. The total US commercial crude inventory is now at 457.9 million barrels.
The graph above shows the rise and dip in various aspects of the market that includes oil and gold. Oil is represented by United States Oil (USO) and gold is represented by SPDR Gold Shares (GLD). USO went up by 0.48% in the wake of the EIA report, while the ADP job report boosted the SPY and the SPUU.
The volatility index, Volatility S&P 500 (^VIX), went down by 8.68% on the day. With a fall in volatility, there was also a fall registered in the spot prices of gold. Thus, GLD fell by 1.04% on September 30.
The energy stocks that gained on Wednesday, September 30, in the wake of the EIA report were Chesapeake Energy (CHK), Kinder Morgan (KMI), Apache (APA), Williams (WMB), and Transocean (RIG). The stocks returned 7.95%, 5.81%, 5.50%, 5.50%, and 4.62%, respectively, on September 30.
Chesapeake was hit very hard amid falling natural gas prices and volatile crude oil prices, but it rose on Wednesday when the company announced its decision to lay off 15% of its current workforce as a cost-cutting measure.
Next, let’s analyze the sector performances of the SPDR S&P 500 ETF (SPY).