Small Caps Keep Running: Midweek Sector Check

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The S&P 500 is down about half a percent in the past week, which was shortened by Memorial Day. Let’s take a look at the best- and worst-performing major sectors and industries over that time:

Winners

  • The iShares Russell 2000 ETF (IWM) has led the indexes with a 1.2 percent gain since last Wednesday. It’s benefited from political and financial risk overseas and continued strength in the U.S. dollar. It’s also the only major index to hit a new 52-week high today.
  • The Dow Jones Transport Average ($DJT) has risen about the same amount. Once again, investors are sticking with companies that will benefit from a strong economy — especially on the domestic front. Click here for our special report on the group.
  • Homebuilders rose about 2 percent, continuing to rebound from a sharp selloff in the middle of May.

Losers

  • Global stocks, especially emerging markets (EEM), have dropped by 1-8 percent. Brazil (EWZ), Italy and Spain have led the carnage. Click here for more.
  • The SPDR Financial ETF (XLF) is down 3 percent on worries about Italian debt and as interest rates fell.
  • There’s been heavy profit-taking in SPDR Energy ETF (XLE) and the Market Vectors Oil Services ETF (OIH) as oil pulls back from multiyear highs. Remember there’s an OPEC meeting on June 22.
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David Russell is VP of Content Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.