SPY Rose 1.1% on Oil Price Rebound and Upbeat Consumer Confidence

Renee Blakely - Author

Dec. 30 2015, Published 1:18 p.m. ET

SPY up 1.1%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) jumped 1.1% and 3.3%, respectively, on Tuesday, December 29. The rebound in oil prices after the retreat on the previous day prompted a bullish run on Tuesday. The rebound in oil prices appeared to bring some stability in commodities and their respective ETFs. The rise in oil prices served as a trigger for a stock market rally with only two days left before the end of the year, and investors turned hawkish about the beaten stocks as the consumer confidence rose.

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Market overview

The above graph shows a market snapshot on December 29, 2015. Here, the US Dollar is represented by the PowerShares DB US Dollar Bullish ETF (UUP), oil is represented by the United States Oil Fund (USO), and gold is represented by the SPDR Gold Trust (GLD). The Treasury bond market is represented by the iShares 20+ Year Treasury Bond (TLT) while volatility is represented by the Index, Volatility S&P 500 (^VIX).

In the above graph, we see that the US equities rose along with the rise in oil prices while the bond prices declined. Thus, there was a rise in the Treasury bond yields too, as bond prices and yields maintain inverse relation. The US dollar rose on December 29 on the grounds of upbeat economic data released on the day. From 120.37 yen, the US dollar went up to 120.50 yen while the euro fell to $1.093 from $1.098. The volatility in the stock market declined on the day.

As volatility came falling, gold slightly lost its luster on December 29. Still, there was a rise in the VanEck Vectors Gold Miners ETF (GDX). GDX advanced 1.2% as stocks of gold mining companies like Newmont Mining (NEM), Barrick Gold (ABX), Agnico-Eagle Mines (AEM), Randgold Resources (GOLD), and Royal Gold (RGLD) gained 0.7%, 0.8%, 0.4%, 0.5%, and 0.8%, respectively, on December 29.

Now let’s review economic data along with the sector performances.


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