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Mixed Economic Review Ended the Stock Market’s Gains in October

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Sector performances

The following graph shows the percentage changes in the performances of the component sectors of the SPDR S&P 500 ETF (SPY) as of Friday, October 30.

The energy sector led SPY on the day with a 0.65% return. As we stated earlier, the rise in oil prices boosted the energy sector stocks.

Economic overview

The monthly change for personal income and consumer spending for September 2015 missed the consensus estimate of 0.2% and came at 0.1%. “Personal income” is the dollar value of income received by individuals from all of the sources. “Personal outlay” is the equivalent dollar value of all the purchases made of durables, non-durables, and services in the month. The overall economic activity for September wasn’t up to the level that analysts expected. The consumer sentiment for October was 90. It missed the forecasted value of 92.5. These reports hinted that the economic activity is at a slower pace than economists’ estimates.

Regardless of the above results, the Chicago PMI (purchasing managers’ index) was 56.2 for October 2015. It beat the consensus reading of 49.2. This figure, along with the rise in the employment cost index, gives a mixed review of the US economy. This rise in the employment cost index, according to the estimated 0.6% rate for 3Q15, points towards higher wages, salaries, and benefits. These two reports signaled a momentum in the economic activity of the current quarter. This boosted the consumer discretionary and the material sectors on Friday, October 30. The Consumer Discretionary Select Sector SPDR ETF (XLY) and the Materials Select Sector SPDR ETF (XLB) rose 0.21% and 0.13%, respectively, on the day.

FMC (FMC), Sherwin-Williams (SHW), Martin Marietta Materials (MLM), Ball (BLL), and Allegheny Technologies (ATI) stocks rose 2.4%, 3.4%, 2.3%, 1.8%, and 2.6%, respectively, on October 30. Steel also rose on the day.

Next, we’ll look at SPY’s key stocks on October 30.

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