SPY Falls Slightly on Mixed Sector Performance
Stocks at the top of the SPDR S&P 500 ETF (SPY) on November 25, 2015, were Keurig Green Mountain (GMCR), CONSOL Energy (CNX), and Deere & Company (DE). These stocks returned 8.0%, 6.4%, and 4.8%, respectively, on the day.
The above graph compares the performances of the stock price movements of Deere and the Industrial Select Sector SPDR ETF (XLI) from October 2015 onward.
Deere, which is involved in the manufacture of agricultural equipment, recently reported its quarterly earnings, which beat the market’s expectations. Amid low crop prices, DE’s performance is significant. Though its earnings missed on the revenue front, its per-share earnings exceeded expectations.
The company has projected better profit outlook for 2016 as it trims its costs. The beta of the stock is exactly 1, implying that DE is affected in direct proportion to broad market movement and commodity prices. The trailing-one-year return of the stock is -8.9%, while its trailing-five-day return is 7.4%.
The stock traded at $80 on November 25, 2015. This was above its 50-day and 20-day moving averages but below its 100-day moving average. Its 100-day, 50-day, and 20-day moving averages were $83, $77, and $76, respectively. The trading volume of the stock surged to 11,158,000 stocks from 8,007,000 stocks after the release of its quarterly results.
Deere has earned six “buy,” 13 “hold,” and seven “sell” recommendations. Standard & Poor’s and Moody’s both have rated the stock as “stable.”
Stocks at the bottom of SPY on November 25, 2015, were Hewlett-Packard (HPQ), NRG Energy (NRG), and GameStop (GME). These stocks yielded -13.7%, -3.5%, and -3.4%, respectively, on the day.
Hewlett-Packard fell on Wednesday due to its fiscal 4Q15 earnings miss. The company reported earnings per share of $0.93 and revenue of $25.7 billion against estimated earnings per share of $0.95 cents and revenue of $26.3 billion.
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