It didn't start off as a very good day, but it ended up as one. From the get-go, until about 10 AM ET, the three major averages plummeted. Then, they began a slow but durable climb that changed the losses into gains. After an aborted start between 10 and 11 AM ET, the first wave of the upswing clicked in; it took the Dow up to slightly positive territory. After a near-hour pause, the second wave kicked in at about 1:30 PM ET. That wave had all three averages sporting gains as of 2:30 PM ET. After the day's high was reached about fifteen minutes later, the averages drifted down for the rest of the day except for the NASDAQ; it benefitted from an end-of-day rally. At the close of regular trading, the Dow was up 0.39%, the S&P 500 gained 0.28%, and the NASDAQ put in a gain of 0.16%. Light sweet crude for October delivery stopped dropping, closing up $1.06 at $72.49 per barrel. Natural gas, though, continues to plumb new multi-year lows.
The lowest-quintile cut-off for the Low P/E Bin advanced slightly, from yesterday's 11.91 to 11.92. The yield cut-off, being the S&P 500's dividend yield, dropped one basis point to 2.58%. Once ETFs and stocks with less than 500M market cap were eliminated, as well as stocks with greater than 10% yields, the Bin was left with one hundred and three stocks for an increase of three from yesterday. Here are the changes in the Bin, as dash-listed below:
- Cooper Industries, Ltd.
- Raytheon Company
- United Bankshares, Inc.
Two of the three Arrivals got back in because of declines in their stocks; the third one re-arrived because the dividend cut-off fell below its own. The stock of Cooper Industries, a maker of circuit protection devices and tools, dropped 0.93% and brought its P/E back into Bin range. The same was true for United Bankshares, except more so: the stock dropped 2.39%. The final Arrival, Raytheon, is another of those companies whose stats drift around the Bin's cut-offs. The stock of the defense company rose 0.34%, but the drop in the dividend cut-off put its yield slightly above the S&P 500's.
Often, an upgrade does wonders for a Bin stock. Olin Corporation got one today, and its stock rocketed up 13.67% to close at $17.05. The company, which makes chlor alkili products and Winchester small arms, got upgraded from Equal Weight to Overweight by Barclay's Capital. Barclay's new target for the stock is $22.00. After a spill about a month ago, the company's been inching up. Today's leap comes at the end of that near-month uptrend.
That's all for today's Daily Wrapup. Thanks for reading, and keep in mind that patience still pays.