Utilities sector topped SPY
Among the different sectors within the SPDR S&P 500 ETF (SPY), the utilities (XLU) sector was the only sector to end on a positive note yesterday, rising 1.6%. Utilities stocks generally pay high dividends. In times of Market turmoil, investors turn to safe, dividend-paying utilities stocks. SPY fell almost 8.4% over the course of a month, but the utilities sector (XLU) rose 5.3% during the same period. Utilities stock Duke Energy (DUK) returned nearly 7% in the same period. Currently, the utilities sector (XLU) is trading 6.2% above its 100-day moving average. Over the last six months, it has traded on par with its 100-day moving average.
Walmart weighs on consumer staples sector
Energy sector at the bottom of SPY
The energy sector (XLE) fell almost 1.3% yesterday due to the fall in crude oil prices in the latter part of the day. The US crude oil inventory rose by 2.1 million barrels, which again created panic in the oversupply market. Chevron (CVX) and ConocoPhilips (COP) fell 1.8%, and 0.62%, respectively, in yesterday’s trade.
In the next part of this series, we’ll analyze the performance of IBM.