CNBC Stock Blog
- 5 Stocks That Benefit from Health Care Legislation: Analysts
- 9 Stocks That Play Rising Water Costs: Strategists
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Rally Could 'Have Some Legs in 2010': Market Strategist
- Expect a 'Square Root-Shaped' Recovery: Chief Investor
- HP to Feed on Enterprise Spending Next Year: Tech Analyst
- How Stock Investors Can Play Holiday Travel
- 3 Growth Opportunities in Tech: Analyst
- Prep Your Portfolio for Next Week: Stock Pickers
- Global Growth Good for Portfolio: Stock Picker
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- HP Comes in As Expected; Is It Time to Buy?
- JAL Slides to Record Low on Bankruptcy Jitters
- Paul: Audit the Fed
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Profit Rises, Matches Guidance
- The Social Media Gaming Threat
- Holiday Travel Outlook
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
- Obama says Boosting US Jobs is Top Priority
- More Consumers Giving 'Black Friday' the Cold Shoulder
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Earnings Rise, Match Guidance
- HP Comes in As Expected; Is It Time to Buy?
- Cramer: What Monday’s Housing Number Really Means
- Why the Dollar Will Likely Stay Weak for Some Time
- Bear, Lehman Execs Weren't Wiped Out by Crisis: Study
- How Real Estate Investors Skew Housing's Reality
RSS FEED
writer, OptionMonster
Health care is the only major sector to earn positive gains since the stock market topped out last month, suggesting that sentiment has shifted to a more traditional bear-market perspective.
The Health Care Select Sector SPDR [XLV
Loading...
()
] exchange traded fund is up 1.2 percent since June 12, compared with a 6.75 percent decline for the S&P 500. Other traditionally defensive industries such as consumer staples and utilities have also outperformed, while economically sensitive industries such as energy have fared the worst.
"We're getting into the second half, and the numbers are not that great," S&P market strategist Alec Young said in an interview. "People are taking profits on cyclical high-beta stuff and running to defensives, where sales and earnings are less dependent on what happens in the economy."
Young advises investors to avoid consumer discretionary stocks and industrials. He recommends using the current pullback to accumulate energy and technology shares instead.
The drop in energy and materials stocks marks a reversal from March and April, when they led the market higher as traders priced in a sharp recovery.
The market will get the first taste of how the economy is affecting companies this afternoon when aluminum giant Alcoa [AA
Loading...
()
] reports second-quarter results. Economic reports have shown few signs of a recovery gaining momentum.
Last week, the Labor Department reported a higher-than-expected 467,000 unemployment number as initial jobless claims have yet to fall below the key 600,000 level on a weekly basis. On Monday, the Institute for Supply Management's services index had its highest reading since September but still showed contraction.
___________________________
Options Trading School:
___________________________
___________________________
David Russell is a reporter and writer for OptionMonster.
___________________________








