SPY Up on Economic Data, EWU Weighed Down by Energy Stocks
The healthcare sector rebounded on Friday, November 20, just one day after it led the SPDR S&P 500 ETF’s (SPY) decliners. The graph below illustrates this movement. Allergan (AGN) and Pfizer (PFE) rebounded on November 20, just one day after falling 2.8% and 3.1%, respectively, on November 19. The two pharma stocks fell after the US Treasury Department worked to dissuade the companies from merging. This move would relocate Pfizer’s tax base to Allergan’s home country of Ireland, which has lower corporate tax rates than the United States. AGN gained 3.5% on the day.
Managed healthcare service company UnitedHealth Group (UNH) rose 2.1% on November 20. UNH reduced its earnings forecast for 2015, which led to a fall in the stock prices of Aetna (AET), Anthem (ANTM), Universal Health Services-B (UHS), and Tenet Healthcare (THC) on November 19. However, all these stock rebounded on November 20.
The above graph illustrates the performances of the component sectors of the SPDR S&P 500 ETF (SPY) in percentage change form as of November 20.
Intuit led the technology sector
Intuit (INTU) rose 5.9% on November 20 after the application software company’s quarterly results beat expectations. The company posted earnings per share of $0.09, compared to an expected loss of $0.03 per share. The company’s revenue increased 17% year-over-year to $713 million. Intuit also forecasted profits for the full year 2015 that are above analysts’ estimates. Analysts at J.P. Morgan (JPM) upgraded its stock price target to $104.83.
On November 20, Intuit (INTU) traded at $103.20, which is above its 100-day, 50-day, and 20-day moving averages, indicating an upward trend in its stock price movement. Its 100-day, 50-day, and 20-day moving averages are $96, $93, and $98, respectively. The trailing five-day return of the stock was 6.9%, and the trailing one-year return as of November 20 was 12.5%.
INTU has earned seven “buy” and 11 “hold” recommendations, as well as one “sell” recommendation. Standard & Poor’s rated INTU as BBB+, and Moody’s and S&P had maintained a “stable” outlook for the stock.
In the next article, let’s look at the performances of other component sectors.
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