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Markets Ended Lower, Economic Indicators Missed Expectations

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SPY fell 0.43%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) fell 0.43% and 1.4%, respectively, on Friday, October 30. The US stock market was upbeat on Friday but ended in negative territory. Economic indicator releases signalled that US economic growth was sluggish. It was below economists’ expectations. Regardless of these economic figures, October was better for the equity markets amid corporate quarterly earnings. SPY’s trailing one-month return was 6.6% as of October 30.

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Market overview

The above graph shows the percentage changes in various market aspects on Friday, October 30.

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 ETF (GLD). The total bond market is represented by the Vanguard Total Bond Market ETF (BND). Volatility is represented by the Index, Volatility S&P 500 (^VIX). It rose 3.2% on the day.

The economic indicators released on Friday, October 30, didn’t strengthen the case of a rate liftoff in December. As a result, investors displayed more of an appetite for equities. Amid corporate earnings and bleak chances of a December rate hike, the equities were strong in the early sessions while gold lost its appeal on the day. However, the pace of economic growth couldn’t match the market expectations. It pulled back equities’ early gains.

The rise in oil prices boosted energy stocks—specifically, Denbury Resources (DNR), ENSCO (ESV), Marathon Oil (MRO), and Noble (NE). These stocks rose 5.0%, 4.8%, 4.7%, and 3.7%, respectively, on the October 30.

In the next part, we’ll look at the economic indicators and how they impacted SPY’s performance on the day.

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