S&P 500’s performance
The S&P 500 Index fell ~0.58% to 2,802.60 on July 30. Eight out of the 11 key sectors in the S&P 500 dropped on July 30, but it was the drop in technology stocks that mainly pressured the S&P 500. However, the expectation of strong second-quarter earnings could support the S&P 500.
Reuters estimates that second-quarter earnings could rise 22.6% year-over-year, up from the previous estimates of 20.7% on July 1. The SPDR S&P 500 ETF (SPY) fell ~0.52% to $279.95 on July 30. SPY seeks to tracks the returns of the S&P 500 Index.
S&P 500’s sectoral performance
The communication services, technology, and industrials sectors fell 1.57%, 1.56%, and 0.99%, respectively, on July 30. These sectors pressured SPY the most on the same day.
The energy sector, which accounts for ~6.2% of the S&P 500, rose 0.8% on July 30. The energy sector was the top percentage gainer among the major sectors in the S&P 500. The Energy Select Sector SPDR ETF (XLE) rose ~0.82% to $77.26 on July 30. XLE represents the S&P 500 Index’s energy sector.
Prices rose due to expectations of tightening global supplies due to Iran sanctions and crashing Venezuelan crude oil production. However, the rise in supplies from Russia, the United States, and Saudi Arabia could weigh on oil prices. A Reuters survey showed that OPEC’s oil production increased by 70,000 barrels per day to 32.64 million barrels per day in July, compared to June.
In this series
In this series, we’ll look at the Brent-WTI oil spread, the WTI Cushing-WTI Midland crude oil spread, global crude oil supply outages, and some crude oil price forecasts.