US and UK Stock Markets Soared on October 2
(Continued from Prior Part)
Materials and mining stocks outperformed
The materials and mining sector rebounded by 2.45% on October 2, 2015, as per the S&P 500 Index. The SPDR S&P 500 ETF’s (SPY) constituent mining company stocks, Newmont Mining (NEM), Freeport-McMoran (FCX), and Alcoa (AA), gained 7.77%, 8.15%, and 2.81%, respectively, on the day.
Newmont traded above its 50-day and 20-day moving averages at $17.07. The stock earned ten “buy” recommendations, 13 “hold” recommendations, and one “sell” recommendation. S&P’s debt rating is BBB while the stock is viewed as “stable” by S&P. Newmont rose on account of a rise in gold prices. Gold prices rose following poor US jobs data, which points toward a delay in the rate hike in the near future.
Freeport-McMoran’s rise is owing to a rise in copper prices. The copper futures for December delivery rose ahead of anticipated reductions in copper production in Chile. Chile’s copper mine, Collahuasi, is planning to decrease output by 30,000 tonnes. Freeport-McMoran has received 11 “buy,” nine “hold,” and one “sell” recommendation.
According to the jobs report by the U.S. Department of Labor, the decline in the workforce was more concentrated in the mining sector. Employment in mining reduced by 10,000 in September 2015 and has declined by 102,000 since its peak in December 2014.
Performances of the component sectors
As shown in the graph above, the energy sector was the biggest gainer of the SPDR S&P 500 ETF on October 2, 2015. The rise in oil prices soared energy stocks on the day. Oil prices surged due to a decrease in the number of working US oil rigs, which fell to a five-year low of 614, according to oilfield services provider Baker Hughes.
Around the same time, the war in Syria intensified, which also led to rising oil prices. The biggest gainers in the energy sector were Denbury Resources (DNR), QEP Resources (QEP), and Murphy Oil (MUR). The energy sector was followed by the materials and mining sector and the healthcare sector.
As we have seen, the materials and mining sector rebounded with a rise in prices for metals. The healthcare sector also made a rebound from September 30, 2015, climbing by 2.08% on October 2.
Let’s take a look at the top and bottom performers of the SPDR S&P 500 ETF.
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