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Will Investors Turn Bullish on the Industrial Sector in November?

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Nov. 1 2017, Updated 8:02 a.m. ET

Industrial sector

The industrial sector remained in the positive territory in October 2017. The Industrial Select Sector SPDR Fund (XLI), which tracks the performance of the industrial sector, rose 1.2% in October 2017. On a year-to-date basis, the ETF has returned 17%.

Demand in the industrial sector is expected to improve rapidly in the near future. The expectation for strong development in the infrastructure and defense spaces and hopes for higher fiscal stimulus are the main factors driving the industrial sector. The stronger demand is also expected to boost the earnings of these industrial stocks.

Billionaire investor Mario Gabelli is optimistic about the infrastructure space. He also said that his firm has significant investments in industrial stocks such as HERC Holdings (HRI), Mueller Industries (MLI), and United Rentals (URI).

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Major holdings of the industrial sector

Major holdings of the XLI ETF such as General Electric (GE), Boeing (BA), 3M Company (MMM), and Honeywell International (HON) returned nearly -15.5%, 2%, 10%, and 2%, respectively, so far in October 2017.

In the next part of this series, we’ll analyze the energy sector.

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