Industrial Select Sector SPDR® ETF

The Philadelphia Fed will release the results of its Business Outlook Survey for June, on Thursday, June 19.

3M (MMM) is expected to post earnings per share (or EPS) of $2.01 in 4Q17, an increase of 6.9% over 4Q16.

Norfolk Southern (NSC) has always tried to enhance shareholders’ wealth through dividend payments and share repurchases.

On December 7, General Electric’s closing price was $7.01. Currently, the stock trades near its ten-year low of $6.66.

The Purchasing Managers Manufacturing Index (or PMI) is based on a monthly survey of selected companies that provide an advanced indication of what’s really happening in the private-sector economy.

The Association of American Railroads (or AAR) publishes North American rail freight (UNP) data every week.

With total sales of $45,358 million in 2013, Lockheed Martin is the largest defense contractor in the world. The other major defense contractors in the world include The Boeing Company and Raytheon Company.

The Stanley Security business saw a steady decline in the last four years with sales falling from $2.4 billion in 2012 to ~$2.1 billion in 2015.

In the international arena, FedEx primarily competes with DHL, United Parcel Service (UPS), and foreign postal authorities.

General Electric’s strategy is to reshape its portfolio from a broad conglomerate to a more focused industrial leader.

The Trans-Pacific Partnership is expected open cross-border trade between member nations by increasing imports and exports and cutting taxes and tariffs.

Raytheon’s Integrated Defense Systems segment saw marginally lower sales during the year due to lower sales across most of its major programs such as the Patriot program.

Roper Technologies’ stock has declined since July 2015, after touching a high of $195.93 per share on November 30, 2015.

General Electric’s industrials and finance services are its two broader divisions, contributing 91% and 9%, respectively, to its consolidated 2015 earnings.

UPS has addressed complex supply chain issues such as transportation, distribution, and international trade and brokerage services by offering a variety of services.

The Intelligence, Information and Services segment was almost in line with last year. So were the operating income and margins, all of which saw marginal declines.

Raytheon is a global technology leader and US defense contractor. It primarily develops and manufactures weapons and military and commercial electronics.

Stanley Black & Decker (SWK) has a stupendous record of launching at least 1,000 products every year at an average of three products a day.

For 2016, UPS has anticipated an investment of $2.8 billion in the procurement of capital assets.

The airline industry has maintained its stellar performance in the last five years.

Dover Corporation’s (DOV) Fluids businesses include the Pump Solutions Group (or PSG), which provides pumping solutions to several end markets.

General Electric recently announced that its appliance and lighting division would be sold to Haier.

Stanley Black & Decker (SWK) markets its products through three business segments: Global Tools & Storage, Security, and Industrials.

General Electric wants to shift away from the appliances business, as this segment doesn’t fit into its core business portfolio.

Boeing’s commercial aircraft carry 100–500 passengers, including dual-aisle wide-body aircraft and narrow-body planes with four- to seven-across seating.

Although General Motors has been the top holding of Einhorn’s portfolio for a long time, he reduced some of his position in the stock in 3Q17.

The U.S. government is Lockheed Martin’s (LMT) major customer. With almost 82% of its revenues from the U.S. government, LMT highly depends on the government.

“Industrials, materials, and financials are the sectors. . .you want to be invested in,” said Jeffrey Gundlach recently in a CNBC interview.

Trade has been a key focus with respect to the US elections lately.

Lockheed Martin (LMT) operates in five business segments—Aeronautics, Information Systems & Global Solutions, Mission and Fire Controls, Mission Systems & Trainings, and Space Systems.

Although the industrial sector accounts for less than 20% of GDP, it creates much of the cyclical variability in the economy.

February WTI crude oil futures contracts fell 0.9% to $63.73 per barrel on January 16. Brent oil futures fell 1.6% to $69.15 per barrel on the same day.

On Wednesday, the Dow Jones fell while other major US indexes moved up. The Dow was mainly pulled down by two of its high-weighted stocks—Boeing (BA) and Caterpillar (CAT).

The trade war between the US and China and a new tariff warning on Mexico increased the concerns about a global economic slowdown.

The Dow Jones Industrial Average registered minor gains on March 25, while other major US indexes fell.

On March 6, Boeing (BA) announced that it completed the acquisition of ForeFlight. Boeing didn’t disclose the financial terms of the deal.

Norfolk Southern (NSC) has been investors’ industry favorite since the beginning of 2019. The stock has risen 21.3% YTD.

Aswath Damodaran, better known as the “Dean of Valuation,” advised investors to consider NVIDIA (NVDA), Boeing (BA), and General Electric (GE) for long-term buys.

On September 24, General Electric’s (GE) Renewable Energy division launched its new onshore turbine platform named “Cypress.”

Caterpillar (CAT) reported revenues of $14.01 billion in the second quarter—an increase of 23.7% on a YoY (year-over-year) basis.

C.H. Robinson Worldwide (CHRW) is the largest third-party logistics provider in the world.

On June 26, Boeing (BA) announced it has joined the race to make the next-generation version of the Concorde, a hypersonic jet.

As per the FOMC staff report, inflation (TIP) in the US remained below the 2% target.

The Fed’s December industrial production report was released on January 17. The report indicated that industrial production continued to improve throughout 2017.

Capacity utilization and the US economy Among the key macroeconomic indicators published by the Federal Reserve, US industries’ capacity utilization is particularly important for understanding the health of each industry. Changes to this indicator can help forecast any changes to the business cycle, product demand, and workforce demand. Increasing levels of capacity utilization could translate to a higher number […]

The December PPI fell 0.1% month-over-month—compared to a 0.4% increase in November and October. The final demand index rose 2.6% in 2017.

The Institute of Supply Management’s New Orders Index The ISM’s (Institute of Supply Management) New Orders Index is a monthly report on changes in new orders, supplier deliveries, inventories, production, and employment. New orders are a measure of future activity in any industry (VIS), as companies’ production depends on incoming orders. The ISM’s New Orders […]

The average work week The US Bureau of Labor Statistics’ establishment survey includes data on the number of hours worked by manufacturing employees. Changes in the number of working hours help investors assess the health of the sector. A rise in the number of working hours signals that companies are projecting higher demand in the manufacturing sector […]

The last statement from the US Fed, which was released with its recent rate hike decision, cited lower levels of inflation but hopes that the inflation target could be achieved in 2018.

In the November capacity utilization report, the manufacturing sector remained strong with 76.4% capacity utilization, the highest level since May 2008.