Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.
The SPDR S&P 500 (SPY) and the Direxion Daily S&P500 Bull 3X both fell by 1.1% and 3.3%, respectively, on January 27, after the Fed’s decision not to hike.
Huntington Bancshares (HBAN) plunged 8.5% on Tuesday, January 26, after the bank announced its plan to acquire FirstMerit (FMER) in a deal worth $3.4 billion.
Tyco International (TYC) and Johnson Controls (JCI) revealed on Monday, January 25, 2016, that they are going to merge. The news raised TYC stocks that day, while JCI fell 3.9%.
Energy sector stocks also made it to the top three of the SPY. Southwestern Energy (SWN), CONSOL Energy (CNX), Kinder Morgan (KMI), and Range Resources (RRC) skyrocketed.
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) marched upwards on Thursday, January 21, 2016, registering 0.6% and 1.2% gains, respectively.
All the sectors of the SPY turned red on the day. Stocks belonging to the consumer discretionary sector, the technology sector, and the energy sector saw major drops.
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) retreated on Wednesday, January 13, 2016, after a short lift that lasted for two days.
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) managed to end slightly higher on Monday, January 11, with returns of 0.1% and 0.06%, respectively.
As growth in China slows, the demand for these commodities reduces, and both revenues and profit margins for Alcoa and other stocks are directly affected.
Amid rising volatility, investors preferred safe havens. Gold rose by 1.4% and settled at $1,103.90 per ounce. The prices of the Treasury bonds rose by 0.2%.
Some member countries of OPEC—namely, Saudi Arabia and Kuwait—support the policy to keep oil output high in order retain market share against non-OPEC producers.
Saudi Arabia and Iran are the two major oil-producing countries of OPEC. Tensions between them have escalated after Saudi Arabia’s mass execution on Saturday, January 2, 2016.
The stocks at the top of the SPDR S&P 500 ETF on December 30, 2015, were Allegheny Technologies (ATI), Mallinckrodt (MNK), and Tesoro Corporation (TSO).
Let’s disucss the changes in the component sectors of the SPDR S&P 500 ETF (SPY). All sectors turned red on Wednesday after oil prices took a nosedive.
The SPDR S&P 500 ETF and the Direxion Daily S&P500 Bull 3X ETF stalled their rally on Wednesday, December 30, with falls of 0.7% and 2.1%, respectively.
Qualcomm surged 2.6% on December 29 after the company announced that it had signed a 3G and 4G Chinese patent license agreement with Beijing Tianyu Communication Equipment company.
XLV went up 1.2% on Tuesday, December 29. Its top stocks included Vertex Pharmaceuticals (VRTX), St Jude Medical (STJ), Cerner (CERN), and Biogen (BIIB).
Alphabet (GOOGL) and Ford (F) might create a joint venture to build self-driving cars. It would use Google’s technology to develop the automated driving technology and Ford’s manufacturing expertise.
Freeport-McMoRan’s (FCX) trailing one-year return is the lowest at -70.7%. The stock had a steep fall on December 28, after its executive chairman stepped down.
The top performing stocks to date–December 23—include Netflix (NFLX), Amazon.com (AMZN), First Solar (FSLR), Total Systems Services (TSS), and NVIDIA (NVDA).
In November, Pfizer (PFE) and Allergan (AGN) confirmed their merger deal to form the world’s biggest drug company by sales. This was the largest deal of 2015.
The financial and financial services sectors are represented by the Financial Select Sector SPDR ETFand the Financial Services Select Sector SPDR, respectively.
As we enter 2016, let’s review how Wall Street and US stocks, represented here by the SPDR S&P 500 ETF (SPY), responded to global events throughout 2015.
The technology sector, represented by the Technology Select Sector SPDR ETF, rose by 1.0% on December 21 as the stocks of Apple, Microsoft, and Alphabet rose.
All of the component sectors of the SPDR S&P 500 ETF (SPY) turned red on December 18. Concerns of a global economic slowdown caught investors’ attention.
All the component sectors except utilities in the SPDR S&P 500 ETF (SPY) fell in yesterday’s trade. The Energy Select Sector SPDR Fund (XLE) fell 2.5%.
SPY’s top stocks on December 16, 2015, were First Solar, Windstream Holdings, and Joy Global. They rose 9.7%, 6.2%, and 6.1%, respectively, on the day.
The SPDR S&P 500 ETF (SPY) rose 1.5% on December 16, 2015, as Federal Reserve members concluded their two-day meeting about the interest rate direction.
Many banks and financial service providers’ stocks rose on December 15. US investors picked the stocks with the expectation of the zero interest rate policy.
First Solar (FSLR) rose 5.7% yesterday after 195 nations attending the Paris climate change conference reached a historic agreement to cut emissions to address climate change.
The Consumer Staples Select Sector SPDR Fund (XLP) and the Consumer Discretionary Select Sector SPDR Fund (XLY) rose 1.0% and 0.5%, respectively, in yesterday’s trade.
The average ETF weight of the electric utilities stocks in the SPDR S&P 500 ETF (SPY) is 0.08%. Their beta value is less than 1, and thus they’re less volatile.
Eight of the 11 component sectors of the SPDR S&P 500 ETF (SPY) rose on Thursday, December 10, 2015. The energy and healthcare sectors led, while the utilities and materials sectors were the decliners.
The iShares MSCI United Kingdom Index (EWU) managed to rebound as commodity stocks regained some of their lost ground. Glencore and Rio Tinto did well.
Dow Chemical (DOW) and Du Pont (DD) each jumped 11.9% on December 9, 2015, as the chemicals companies were reported to be in talks concerning a merger.
The energy and material sectors are impacted first when it comes to China’s economics, the US trade and GDP data, and oil’s demand and supply dynamics,
Keurig Green Mountain (GMCR) jumped 71.9% on Monday, December 7, as the coffee machine maker announced that it will be acquired by private investor group JAB Holding Companies.
On December 4, SPY SPXL surged by 1.95% and 5.79%, respectively. The day was very important because it saw the release of the crucial US employment report.
Avago Technologies creates semiconductors, and is a key supplier to Apple and Samsung. Avago’s adjusted EPS for the quarter ended November 1 came in at $2.51.
The six-month beta of the stocks of AES, PPL, Public Service Enterprise, and Entergy was less than one. Meanwhile, NRG Energy’s six-month beta was around one.
Joy Global and Cummins plunged -13.2% and -7.9%, respectively, on December 1. Bank of America analysts downgraded JOY from “neutral” to “underperform.”
EWU gained 0.06% on November 24, 2015, boosted by the rally in energy stocks that followed tension in the Middle East and concerns of terrorism threats.
On November 23, Tyson Foods (TSN) closed at $48.09, which is well above its 100-day, 50-day, and 20-day moving averages of $44, $44, and $45, respectively
On November 20, the SPDR S&P 500 ETF (SPY) rebounded with a 0.36% gain. Better-than-expected corporate earnings results, especially from the retail sector, lifted the market.
J.M. Smucker posted EPS of $1.62, beating the consensus estimate of $1.52. It also reported net sales of ~$2.1 billion, in line with the market expectation.
The Health Care Select Sector SPDR ETF tumbled -1.7% on November 19 after UnitedHealth Group lowered its profit expectations for 2015 and cut its earnings forecast.
November 19 saw the release of the Philadelphia Fed’s Business Outlook Survey for November 2015. Government bonds rose in the wake of the economic data.
Walmart’s (WMT) stock has received five “buy,” 24 “hold,” and two “sell” recommendations. Standard & Poor’s rated WMT stock as “AA” with a “stable” outlook.
The Fed’s monthly index on Industrial Production for October 2015 noted that industrial production missed expectations. It fell by 0.2% in October due to weakness in the utilities and mining sectors.
On November 17, US equities, which had traded in positive territory in early sessions, ended down after the news of suspected terrorist activity in Germany broke.
