Earnings, Economic Reports Boosted SPY Components on November 2
(Continued from Prior Part)
Key stocks
Out of the 502 constituent stocks of the SPDR S&P 500 ETF (SPY), 429 stocks yielded positive returns on November 2, 2015.
Stocks at the top of SPY on the day were Consol Energy (CNX), Hewlett-Packard (HPQ), and Diamond Offshore Drilling (DO). These stocks gained 17.4%, 13.0%, and 11.2%, respectively, on November 2.
Consol Energy (CNX), a coal and consumable fuels company, advanced 17% on November 2 after Barclays (BCS) assigned an “equal weight” rating to the stock. CNX traded at $7.82, and the analyst price target was revised to $15.55, citing its upward potential. Consol Energy has earned 12 “buy,” 11 “hold,” and two “sell” recommendations. Standard & Poor’s rated CNX as BB, with a “stable” outlook.
The above chart shows the price movement of Consol Energy (CNX) since October 2015 compared to the movement of the Energy Select Sector SPDR ETF (XLE).
Energy stocks
Diamond Offshore Drilling (DO) gained 11.2% on November 2 after the company added $333 million to its revenue backlog. The company reported better-than-expected results for its 3Q15 earnings. DO reported earnings per share of $0.99 per share, beating analysts’ forecasted value of $0.60 per share. The stock traded at $22.10, crossing its 100-day, 50-day, and 20-day moving averages. DO beat the analysts’ stock target price of $18.44.
Diamond Offshore Drilling’s (DO) trailing one-month return for the stock was 21.5% and its trailing five-day return was 12.4%. The stock’s trading volume surged to 7,006,319 stocks from the five-day average volume of 3,746,294 stocks. DO stock received 16 “hold,” 17 “sell,” and no “buy” recommendations, as the Relative Strength Index of the stock is 63, nearing the level of 70. A stock with an RSI approaching 70 implies that it may be overvalued and can be pulled back. This could explain why DO has no ”buy” recommendations. The stock is rated BBB+ by Standard & Poor’s with a “stable” outlook.
Other oil and gas drilling stocks that gained on the day were Ensco (ESV), Transocean (RIG), Noble Corp (NE), and Nabors Industries (NBR). These stocks rose 8.0%, 5.5%, 5.3%, and 4.0%, respectively, on November 2.
In the next part of this series, let’s look at the stocks that were at the bottom of SPY on Monday.
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