The following graph presents the changes in the component sectors of the SPDR S&P 500 ETF (SPY) as of January 11.
After the energy sector, the material sector was hit the hardest on Monday. With growth concerns about China and the rising US dollar, commodities had been impacted the worst. The falling demand for fuels and industrial metals in the world’s largest consumer country, China, has been battering the material sector since the second half of 2015. The Materials Select Sector SPDR ETF (XLB) plunged 1.7% on January 11, 2016.
Freeport-McMoRan’s woes worsened
Copper producer Freeport-McMoRan (FCX) fell the most out of all the stocks in SPY. Barring one slight lift, copper prices have been trending downwards in 2016. The United States Copper Index (CPER) fell to 2.0% on Monday, January 11. Analysts believe that the sharp decline in FCX was triggered by Arch Coal’s (ACI) bankruptcy filing. ACI stock plunged -30.9% on Monday after the company filed for Chapter 11 bankruptcy protection.
The news affected the entire material sector and also the stocks of coal producer CONSOL Energy (CNX). CNX fell 9.0% while mining stocks Newmont Mining (NEM), Nucor (NUE), Alcoa (AA), and Allegheny Technologies (ATI) dropped 5.6%, 0.8%, 0.9%, and 3.7%, respectively, on the day.
The beta value of Freeport-McMoRan (FCX) is 2.1, which means that the stock is highly volatile. The trailing-one-year return of the stock had been -81.2%. The trading volume of the stock was 1.2 million on Monday as against 44.3 million on the previous trading day. The stock traded at $4.31, whereas its 100-day, 50-day, and 20-day moving average values are $9, $8, and $6, respectively.
In the next article, we’ll look at the key stocks in SPY on January 11.