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SPY Rose Slightly, Witnessed the Energy Sector Sell-Off

Renee Blakely

SPY and EWU Impacted by the Energy Sector Sell-Off

SPY rose by 0.11%

The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P500 Bull 3X ETF (SPXL) rose by 0.11% and 0.36%, respectively, on Friday, November 27, 2015. The markets weren’t open on November 26 due to the Thanksgiving holiday. The markets closed early on November 27. With no economic indicator release scheduled for November 27, investors are eyeing the employment data for November. The data are due this week. Besides, the trading volume was low on November 27. SPY managed slight gains.

Market overview

The above graph shows a summary of the market overview. It shows the percentage changes in various market aspects.

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). The total bond market is represented by the Vanguard Total Bond Market ETF (BND). Volatility is represented by the Volatility S&P 500 (^VIX).

Sell-off in the energy sector

The Energy Select Sector SPDR ETF (XLE) fell by 0.72% on November 27, 2015, as the US dollar gained strength against other world currencies. The US investors anticipate a rate hike at the Fed’s December meeting. The rising confidence in the possibility of the Fed lifting its short-term interest rates  triggered the US dollar. This made oil more expensive in the wake of the supply glut. As a result, oil fell steeply by 2.7%. They day led to a sell-off in the energy sector. Energy stocks including Noble (NE), Southwestern Energy (SWN), Marathon Oil (MRO), CONSOL Energy (CNX), and Range Resources (RRC) were hurt the most on November 27. These stocks yielded -3.8%, -7.2%, -3.7%, -6.5%, and -5.9%, respectively, on the day.

In the next part of this series, we’ll look at how other sectors performed on November 27.

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