Safe havens slammed as bulls charge: Midweek sector check

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The S&P 500 is showing signs of a breakout as investors pile into higher-risk stocks. Meanwhile, safe havens are getting slammed. Here’s a breakdown of the best- and worst-performing industries over the last five sessions.

Winners:

  • Technology is leading the charge, with the SPDR Technology Fund (XLK) up almost 3 percent. Positive news events include the Apple (AAPL) Developer Conference (WWDC) and news that Twitter (TWTR) will join the S&P 500. Chinese Internet stocks like Baidu (BIDU) and Alibaba (BABA) have also surged on news that MSCI will include mainland stocks in its indexes.
  • Retail has exploded higher as Wall Street digests results from Macy’s (M), Under Armour (UAA), Kohl’s (KSS) and Target (TGT).
  • Materials have also outperformed, led by metal companies like Freeport-McMoRan (FCX) and chemical giant DowDuPont (DWDP).

Losers:

  • The SPDR Utility Fund (XLU) is the worst major sector ETF in the last week, cratering more than 4 percent. A strong economy and expected rate hike from the Federal Reserve next week are weighing on the group. Ditto for consumer staples (XLP). Both are usually considered safety plays and valued for their dividends.
  • Profit takers are also selling energy stocks following a big rally in April and May. There are also concerns about Russia increasing its oil production as OPEC’s next meeting approaches 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.