On a day-to-day basis, most stock tend not to have dramatic price movements. However, material news/information that is fundamental to an industry, sector or stock's business does get released periodically. This type of news has the potential to move a stock by several percentage points (in either direction). While it is a measure of prestige, a stock's inclusion into the S&P500 does not protect the stock to downward movements.
But even if a stock has already moved, it might still warrant a look. After good news, a stock may increase in value, but this momentum can often continue on for more upside. Likewise, bad news often knocks down a stock's price more than is warranted, causing it to sell at bargain levels until the price moves back up.
Check out which S&P 500 components made the biggest moves in October. By comparison, the entire S&P 500 was up 3.4% and the DJIA was up 3% over the same period. (For related reading, see How Now, Dow? What Moves The DJIA?)
October's Best-Performing S&P500 Stocks
|Monster Worldwide, Inc(NYSE:MWW)||+41.14||2.39B|
|CF Industries Holdings, Inc.(NYSE:CF)||+28.25%||8.63B|
|Wynn Resorts Ltd. (Nasdaq:WYNN)||+25.46%||13.49B|
October's Worst-Performing S&P500 Stocks