Where do these stocks get all of their energy?
In the month of April, energy has been the best-performing sector in the S&P 500, rising 4.7 percent while the index has fallen slightly. What's odd is that this outperformance comes even as energy stocks are looking at the biggest earnings decline in the S&P.
The "blended earnings growth rate" (which combines the earnings of the companies that have already reported with analyst estimates of those yet to report) is 0.6 percent for the S&P 500 as a whole, according to FactSet. But for the first quarter of 2014, the energy sector earnings are actually expected to decline by 8.9 percent from Q1 2013. This number is heavily weighed down by the expected decline in earnings from integrated oil giants Exxon Mobil and Chevron.
For comparison, the second-best performing sector in April, utilities, is looking at year-over-year earnings growth of 15.2 percent—the highest of any sector save telecom.