Shares of power producers fell as a retreat from the sector continued.
Capital flows from utilities to tech cyclicals accelerate on strong tech earnings; utilities ETF falls to 1% YTD gains. Treasury yields and reversed momentum reflect investor reallocation from defensive toward higher-growth technology sector exposure.
Shares of power producers fell as a retreat from the sector continued.
Strong earnings from tech companies has caused a rush back into cyclical sectors at the expense of defensive sectors.
Elevated Treasury yields are still weighing on utilities. Momentum has also turned against the sector.
The SPDR Select Sector Utilities exchange-traded fund, which tracks the utilities industry group of the S&P 500, has pared year-to-date gains to a paltry 1%.
Write to Rob Curran at rob.curran@dowjones.com
Shares of power producers fell as a retreat from the sector continued.
Shares of power producers fell as traders rotated into more cyclical sectors.
Shares of power producers continued their recent retreat as traders rotated into less rate-sensitive sectors.
Shares of power producers slid as traders rotated out of the sector, wary of the interest-rate outlook.
Shares of power producers rose as traders rotated back into a sector that had fallen into disfavor.
Shares of power producers fell as traders continued to rotate out of defensive sectors into the high-risk tech sector.
