Thursday Sector Laggards: Industry, Technology and Communications

LLooking at the sectors that fared the worst Thursday at noon, stocks of industrial companies underperformed other sectors, posting a loss of 1.0%. Within this group, Northrop Grumman Corp (Ticker: NOC) and Lam Research Corp (Ticker: LRCX) are two large stocks that are lagging behind, posting a loss of 6.8% and 6.5%, respectively. Among industrial ETFs, a sector-tracking ETF is the SPDR Industrial Select Sector ETF (Ticker: XLI), which is down 0.9% on the day and 6.42% year-to-date. Northrop Grumman Corp, meanwhile, is down 2.93% year-to-date, and Lam Research Corp, down 22.46% year-to-date. NOC represents approximately 2.0% of XLI’s underlying holdings.

The second worst performing sector was technology and communications, posting a loss of 0.9%. Among the big technology and communications stocks, Teradyne, Inc. (Symbol: TER) and Intel Corp (Symbol: INTC) are the most notable, posting a loss of 26.7% and 6.4%, respectively. One ETF closely tracking technology and communications stocks is the Technology Select Sector SPDR ETF (XLK), which is down 0.2% as of midday and 12.49% year-to-date. Teradyne, Inc., meanwhile, is down 35.75% year-to-date, and Intel Corp, is down 6.08% year-to-date. Together, TER and INTC represent approximately 2.3% of XLK’s underlying holdings.

Comparing these stocks and ETFs on a twelve-month basis, below is a graph of relative stock price performance, with each of the symbols displayed in a different color, as shown in the legend at the bottom:

Here’s a look at how the S&P 500 components across sectors are faring in Thursday afternoon trading. As you can see, two sectors are up on this day, while five sectors are down.

Sector % Switch
Utilities +0.7%
Materials +0.5%
consumer products 0.0%
Services -0.0%
Health care -0.1%
Energy -0.1%
Financial -0.8%
Technology and communication -0.9%
Industrial -1.0%

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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