Earnings: Which Sectors Will Shine? [Business Week]
Summary: According to the research director at Standard & Poor's, both the materials and energy sectors are likely to post double digit gains, 45% and 25% year-over-year advance, respectively. The following sectors are expected to lag: IT with only a 2% gain, consumer staples at 4%, and healthcare at 6%. According to Stephen Biggar, VP of U.S. equity research at Standard & Poor's, "a continued weak capital spending environment and product delays are likely to cap upside potential for information technology." Lower gas prices and the tumbling housing market are expected to play a tug-of-war with consumer discretionary spending. S&P also suggests overweighted sectors such as consumer staples, telecom, and financials. Given their instabilty, sectors in the underweight category include information technology and consumer discretionary.
Related links: A Funny Thing Happened on the Way to the Deflation Scare • Health Care Is Propping Up the Entire Economy [Business Week] • What a U.S. Recession Would Mean for Sectors , Foreign Stocks • 10 Most Popular Sectors This Week
Potentially impacted stocks and ETFs: Stocks mentioned: Yahoo (YHOO), Apple (AAPL). Sector ETFs: iShares Dow Jones U.S. Energy Index (IYE), iShares Dow Jones U.S. Healthcare Index (IYH), iShares Goldman Sachs Technology Index (IGM), Materials Select Sector SPDR (XLB), Consumer Staples Select Sector SPDR (XLP), Consumer Discretionary Select Sector SPDR (XLY), iShares Dow Jones U.S. Telecom Sector Index ETF (IYZ), Financial Select Sector SPDR ETF (XLF)
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