Industrials take the Lead

Industrials take the lead

According to a recent study by Strategas*, statistics show that industrials are starting to lead the market, largely driven by impressive earnings.

Strategas noted: “We remain impressed with the response from the Industrial stocks this earnings season – the sector is having its best 10-day performance run since the 2016 election and new highs are again starting to expand. Both conditions reflect a momentum spark and have historically bullish implications…The small-cap Industrials sector is also on the verge of fresh highs.”

Industrials relative to S&P 500

This is important to note because it is evidence that fiscal stimulus can have an impact on propelling economic growth and that the market is appreciative of this.

*Momentum Spark for Industrials, Strategas Technical Strategy, August 1, 2018.