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Utility Sector Falls, Consumer Staples and Energy Sectors Rise

Renee Blakely

Utility Sector Weighs on SPY, while Energy Sector Rises

(Continued from Prior Part)

Sector performances

The following graph illustrates the performances of the component sectors of the SPDR S&P 500 ETF (SPY) on November 23.

 

As seen in the graph above, the energy sector advanced on the day with a 0.6% rise in US crude oil. Thus, the energy stocks that gained significantly on the day were Nabors Industries (NBR), Cimarex Energy (XEC), Denbury Resources (DNR), and Tesoro Corporation (TSO). These stocks rose 5.2%, 3.1%, 3.0%, and 2.8%, respectively, on November 23.

Utility sector was the biggest drag on SPY

The utility sector, represented by the Utilities Select Sector SPDR ETF (XLU), fell by 0.9% on November 23. All its multi-utilities and electric utilities stocks fell on the day, including PG&E Corporation (PCG), Dominion Resources (D), Ameren Corporation (AEE), and Duke Energy Corporation (DUK). The only exceptions to the sector’s fall were NRG Energy (NRG), AGL Resources (GAS), and Integrys Energy Group (TEG). These stocks rose 1.3%, 0.6%, and 0.01%, respectively, on November 23.

NRG Energy (NRG), an independent electric power producer, rose 0.6% on the previous trading day, Friday, November 20. The trailing-one-month return of the stock as of November 23 was -13.3%. The stock settled at $12.15 on the day. This is less than its 100-day, 50-day, and 20-day moving averages of $18, $15, and $13, respectively.

Analysts’ stock price target is set at $22.83, which signals potential for a rise in the stock. The relative strength index, or RSI, of the stock is 32. When the RSI of any asset approaches 30, it implies that the asset is oversold and hence undervalued. This undervalued stock with potential for gains has earned 11 “buy,” 3 “hold,” and no “sell” recommendations. Standard & Poor’s has rated the stock as BB-, and both Moody’s and Standard & Poor’s have maintained a stable outlook for the security.

Let’s look at the other key stocks of the SPY on the day.

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