US stocks close higher
Wall Street rallied for the second day and posted its largest two-day gain since August 2015. The SPDR S&P 500 ETF (SPY) rose 1.7% and closed at $189.78 on February 16, 2016. Similarly, it rose 2% on February 12, 2016.
The bounce back in the energy sector on Friday, February 12 helped SPY to inch upward. A report released on Friday stated that OPEC (Organization of the Petroleum Exporting Countries) might agree to cut production to reduce the glut in the world supply market.
For these reasons, crude oil bounced back 12% on the day, and the energy sector boosted its performance. Major integrated oil and gas stocks such as ExxonMobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) rose nearly 5% on the day.
On Tuesday, February 16, a meeting was held between Saudi Arabia and Russia (RSX) in Qatar, with the presence of other OPEC countries. The outcome of this meeting was that both major producers and exporting countries agreed to freeze oil output to January levels. This propelled oil prices to rise 6%. However, later in that day, crude oil prices fell and closed on negative notes due to the global oil deal with Iran that was in focus at the time.
Though US oil prices came down by 1.4% on February 16, SPY was able to maintain its uptrend for the second straight day. In the course of this series, we’ll analyze which sector drove SPY’s movement and which stock contributed the most to SPY’s performance. We’ll close the series with a look at SPY’s bottom stocks.
Let’s begin by looking at the different sector performances on February 16, 2016, in the next part of this series.