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Commodities and S&P 500 Price Action on May 3

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S&P 500’s performance  

The S&P 500 fell ~0.2% to 2,629.73 on May 3 due to disappointing earnings results from some companies. Seven out of the ten major sectors in the S&P 500 fell on May 3. The SPDR S&P 500 ETF (SPY) fell ~0.2% to $262.5 on May 3,. SPY seeks to follow the S&P 500 Index’s performance.

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S&P 500’s sectoral performance  

The healthcare, financials, and consumer discretionary sectors fell 0.9%, 0.8%, and 0.4%, respectively, on May 3. These sectors pressured SPY the most on the day. The energy sector, which accounts for ~6.2% of the S&P 500 Index, fell 0.2% on May 3. The Energy Select Sector SPDR ETF (XLE) fell ~0.2% to $73.47 on May 3. XLE represents the S&P 500 Index’s energy sector.

The sentiments in the commodities and equities markets can affect each other depending on the magnitude of the moves and various fundamental factors impacting each market.

Commodities 

June WTI crude oil futures rose 0.7% to $68.43 per barrel on May 3. Prices rose due to rising geopolitical tensions and ongoing supply cuts. The United States Oil ETF (USO) rose ~1.1% to $13.8 on May 3. USO aims to track active WTI crude oil futures’ performance.

June US natural gas futures contracts fell 1% to $2.72 per MMBtu (million British thermal units) on May 3. It was the lowest close since April 19. Prices fell due to the larger-than-expected rise in US natural gas inventories from April 20–27, 2018. The EIA released the data on May 3, 2018. The United States Natural Gas ETF (UNG) fell 0.7% to $22.3 on May 3. UNG seeks to track active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) rose 0.6% to $17.4 on May 3. GSG seeks to track an index composed of a diversified group of commodities futures.

Series overview  

In this series, we’ll discuss US natural gas inventories, production and consumption, and natural gas price forecasts.

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