- Even as the stock market grinds higher, shares of utilities companies (XLU +0.8%) have been leading the S&P 500 of late, climbing 3.2% over the past week vs. a 1% gain for the S&P.
- The sector underperformed early in the year, but it is now up 9.9% YTD compared to the broader index’s 7.9% gain.
- It’s not necessarily good news, as some analysts say the gains in part reflect scaled-back expectations for U.S. economic growth.
- But others say the recent gains in utilities could be fleeting; “Overall, the economy’s momentum is firm, and the hype around the latest Washington news will dissipate gradually,” says Alan Gayle, director of asset allocation at RidgeWorth Investments.
- In yesterday’s trade, the biggest utility stocks all rose: PCG +1.6%, NEE +1.1%, EIX +0.9%, AEP +0.8%, D +0.8%, PPL +0.8%, SRE +0.7%, EXC +0.6%, DUK +0.5%, SO +0.2%.
- Now read: Utilities And Energy: Still The Most Overpriced Sectors (Dashboard Update)
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