Stocks at the top of the SPDR S&P 500 ETF (SPY) on January 13 were Southwestern Energy (SWN), Chipotle Mexican Grill (CMG), and Range Resources (RRC). These stocks gained 8.8%, 5.9%, and 2.8%, respectively, on the day.
Some analysts consider the rise in the energy stocks of Southwestern Energy (SWN) and Range Resources (RRC) as a “dead cat bounce,” wherein investors assume that the security has reached its bottom and buy it. Thus, the stocks reflect a slight, temporary rise.
Chipotle Mexican Grill is gearing up
At its investors conference in Florida on Wednesday, Chipotle Mexican Grill’s (CMG) executives revealed the action plans the restaurant chain will take to restore the brand’s goodwill and its customers. Read Chipotle Mexican Grill Fell for details about the company’s problems.
Chipotle’s course of action includes more food safety measures, steps to kill bacteria if found, unique norovirus protocols, changes in sick leave and employment policies, and aggressive marketing campaigns.
According to the Beige Book, released on Wednesday, January 13, the US economy is not strong enough to lift interest rates. As per the book, the growth in consumer spending can be attributed to the holiday shopping season. Still, there was a weakness in the apparel sales while the auto sales activity was mixed. Price pressures were minimal, as was wage pressure. Agriculture had a tough time due to floods, droughts, and falling commodity prices. On the other hand, there was strength in the real estate sector.
Now let’s take a look at the UK stock market on January 13.