SPY’s the Limit: US Stocks Rise ahead of Fed Meeting
(Continued from Prior Part)
Top stocks
Stocks at the top of the SPDR S&P 500 ETF (SPY) in yesterday’s trade were First Solar (FSLR), Electronic Arts (EA), and Diamond Offshore Drilling (DO). These stocks rose 5.7%, 3.7%, and 3.6%, respectively, on the day. The following graph presents the price movements of First Solar (FSLR) and its peer SolarCity Corporation (SCTY) since October 2015.
First Solar (FSLR) rose 5.7% yesterday after 195 nations attending the Paris Climate Change Summit reached a historic agreement to cut emissions to address climate change. First Solar (FSLR) and SolarCity Corporation (SCTY) provide solar energy solutions worldwide. Therefore, their stocks rose 5.7% and 12.3%, respectively, on the day.
The trailing-one-year return of First Solar (FSLR) is 40.2%. The beta for the stock is 1.2, which means it is sensitive to broad market movement. The stock has earned ten “buy,” one “sell,” and nine “hold” recommendations. Analysts’ stock price target is set at $65.85, which means it has a growth potential of 12.7%.
Diamond Offshore Drilling (DO) rose on Monday due to the rebound in oil prices. According to Baker-Hughes, the US rig count fell by 28 rigs to 709 rigs, as of December 11. The drop in the rig count benefitted oil and gas producers.
Bottom stocks
Stocks at the bottom of SPY in yesterday’s trade were Southwestern Energy (SWN), NRG Energy (NRG), and Tenet Healthcare Corporation (THC). These stocks fell 9.7%, 9.3%, and 9.2%, respectively, on the day.
Southwestern Energy (SWN) fell due to plummeting natural gas prices. Warm weather has hurt the demand for natural gas for home heating. Hence, companies in the natural gas production and storage sectors fell on the day.
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