uploads///Performance of SPYs Component Sectors

The Industrial Production Report Pressured the Utility Sector

Renee Blakely - Author

Nov. 19 2015, Published 10:22 a.m. ET

Oil pulled back

Oil rose on Monday, November 16, in the wake of concerns over supply disruption from the Middle East. However, oil pulled back over the anticipated oversupply in the US. Analysts forecasted a rise of 2 million barrels in the weekly crude oil inventory. The energy stocks that rose to the top of the SPDR S&P 500 ETF (SPY) declined on November 17 due to an oil supply glut as production continued to beat global oil demand.

Investors turned to safer investment avenues during risky events represented by the serial terror attacks in France in November 13. Bond prices rose on November 17, and the Vanguard Total Bond Market ETF (BND) gained 0.11% on November 16.

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Utilities leading decliners

The above graph depicts the performances of the component sectors of the SPDR S&P 500 ETF (SPY) in percentages as of November 17, 2015.

The utility sector dropped by 1.8% and led the decliners. The Federal Reserve’s monthly index on Industrial Production for October 2015 was released on Tuesday, November 17. The report notes that industrial production missed expectations and fell by 0.2% in October due to weakness in utilities and the mining sector. There was a sell-off in the utility sector on the day. On November 17, stocks of NRG Energy (NRG), Exelon Corp (EXC), Duke Energy (DUK), and AES Corp (AES) yielded -5.5%, -3.4%, -2.8%, and -2.7%, respectively.

Real estate

The National Association of Home Builders released its housing market index on Tuesday, November 17, which came in at 62 for November 2015. The reading was below the consensus reading of 64 and the October reading of 65. However, a reading above 50 indicates improvement. The real estate sector was in the lead on Tuesday, with the Real Estate Select Sector SPDR ETF (XLRE) gaining 1.6% on November 17.

In the next article, let’s look at the retail sales scenario as the earnings and economic data both came out on Tuesday, November 17.


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