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Oil Price Fell and Rattled the Energy Sector, SPY Ended Lower

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SPY fell 0.39%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) fell by 0.39% and 1.2%, respectively, on Wednesday, November 11. The anticipated glut in the oil supply led to an additional fall in the oil prices. Oil, represented by the United States Oil (USO), fell by 2.3% on November 11. The fall in oil prices led the energy sector to emerge as the biggest loser of the day. The Energy Select Sector SPDR ETF (XLE) fell by 2.1%.

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Oil prices rattled the energy stocks

The above graph shows the percentage change in the energy stocks’ performance.

Oil and gas exploration and production companies were largely hit on November 11. Marathon Oil (MRO), Cabot Oil & Gas (COG), and Denbury Resources (DNR) stocks fell by 7.9%, 7.8%, and 10.2%, respectively. The only stock that rose on the day was Newfield Exploration (NFX).

Newfield Exploration traded at $39.69 on Wednesday, November 11. It was above the respective 100-day and 50-day moving averages but below the 20-day moving average of $40. Analysts’ stock price target is set at $44.39 with upward movement potential. The stock’s trading volume rose from 2,926,957 stocks on the previous day to 4,904,616 stocks on the day. The stock earned 24 “buy” recommendations, eight “hold” recommendations, and no “sell” recommendations. Besides, the stock is rated BBB- by Standard & Poor’s with a “stable” outlook.

Newfield Exploration’s trailing one-year return was 19.9%. The returns for Denbury Resources (DNR), Cabot Oil & Gas (COG), and Marathon Oil (MRO) were -67.7%, -37.6%, and -47.0%, respectively, as of November 11.

Let’s take a look at the recent mergers and takeover of the US stock market.

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