Early cyclical stocks are typically the first to see increased demand as the economy improves. Does the recent run in stocks such as DuPont (DD) and Whirlpool (WHR) mean we are avoiding a recession?
Shares of DuPont are up 6% in 2008 while Whirlpool is 11% higher, says Dylan Ratigan.
I think the Fed is setting us up for a second half recovery which should mean stocks in this space will perform quite nicely, says Guy Adami. But right now, I’d take some profits.
Watch for entry points in Dow Chemical (DOW) and Eastman Chemical (EMN) as well as DuPont and Whirlpool. In other words buy on the dip.