US Stock Market Ended High on Upbeat Consumer Sentiment
SPY Turned Buoyant while EWU Looked Conservative on October 16
SPY gained 0.45%
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) gained 0.45% and 1.3%, respectively, on Friday, October 16. The trailing five-day return of the SPY was 0.96% while the trailing one-month return was 4.0%.
Optimistic consumer sentiment
According to the University of Michigan’s Consumer Survey, released on Friday, October 16, the preliminary consumer sentiment index for the month of October was 92.1, which beat the consensus reading of 89.5. It is one of the best readings since mid-August. Consumer sentiment is directly related to the strength of consumer spending. Higher readings point towards the high consumer spirits that are vital for beginning the holiday shopping season on a strong note.
Market snapshot
The above graph illustrates the rise and fall in various market aspects as of October 16. Here, the US dollar is represented by the PowerShares DB US Dollar Bullish ETF (UUP), oil is represented by the United States Oil Fund (USO), and gold is represented by the SPDR Gold Trust (GLD). Volatility is represented by the Volatility S&P 500 (VIX).
October 16 saw the US dollar rise by 0.16% and oil rise by 0.59%. Market volatility went down by 6.3% on the day. Gold, which is considered a safe-haven investment, slipped by 0.71% on the day.
The energy stocks that yielded positive returns on the day were Pioneer Natural Resources (PXD), Diamond Offshore Drilling (DO), Marathon Petroleum (MPC), and Noble Energy (NE). These stocks yielded 2.9%, 2.3%, 2.1%, and 1.9%, respectively, on October 16 due to the rise in oil prices on the day.
In the next article, let’s look into the sector performances of the SPDR S&P 500 ETF (SPY) as of October 16.
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