SPY Up 0.01% on August 28, 0.73% Return for the Trailing 5 Days

Energy stocks rose 2.27% on August 28 as the highest gaining component sector of the SPDR S&P 500 ETF (SPY). The rise in these stocks contributed to the rise in oil prices for the second consecutive day. The graph below shows the component sector performances of the SPY ETF.

Diamond Offshore Drilling (DO), an oil and gas drilling company, reported a 5.47% gain on August 28. The company’s trailing five-day return was 12.61%. DO announced its 2Q15 results in the first week of August, with impressive results. The reported net income was $90 million, or $0.66 per share compared to $0.65 per share in 2Q14. The company’s 2Q15 revenues were $634 million, compared to $692 million in 2Q14, taking into consideration the significant impact of the oil price slump on the energy sector during the last few months.

Another oil and gas drilling company, Nabors Industries (NBR), rose 5.85% on August 28. Currently, 18 analysts have recommended the stock as a “buy.” There are nine “hold” recommendations compared with two “sell” recommendations for the stock.

Oil and gas equipment and services company FMC Technologies (FTI) returned 5.41% on August 28. The trailing five-day return for FTI was 14.23%. The stock closed at $34.28, which was above its 20-day moving average.

The energy sector was followed by the material sector with respect to gains at the equity market. Mining stocks such as Alcoa (AA), Freeport-McMoRan (FCX) and Newmont Mining (NEM) returned 6.21%, 3.04%, and 2.81% on August 28. These companies are involved in gold and diversified metals mining.

Newmont Mining is reported to have sold its stake in the Valcambi gold refinery in Switzerland to a subsidiary, Rajesh Exports, for $119 million in cash. NEM aims to reduce its debt, invest in profitable production projects, and enhance its shareholders’ return through the sales of non-core assets.

Next, let’s look at the top-performing stocks on August 28.

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• Part 2 - Avon Leads SPY, Gains 7.72% on August 28