Waning rally in utilities could spell trouble for the broad market


Utility stocks have been the top performer in the S&P 500, up 11% YTD, but they’ve started to wane - down 2.7% so far in May - and that may not bode well for the broad market, WSJ's Steve Russolillo writes.

Strength in utilities suggests investors have taken a more defensive mindset in 2014 compared to last year’s big rally, and if demand for the group continues to fade and struggling momentum names fail to step up, the entire rally would seem to be in trouble.

Whether utilities remain on top could foreshadow how the broad market performs in the months ahead, Russolillo concludes.

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Comments (3)
  • bullsbearspigs
    , contributor
    Comments (806) | Send Message
     
    he's mad because while the rest of us owned utes, pfds and mlps and yield plays he was probably loaded to the gills in facebook , twitter and all the bioyuck stocks.
    whenever some sector goes up that isnt fashionable some 25 year old journalism major in New York has to do a slam piece because it isnt lululemon or whatever the fad of the month is...

     

    WATCH THE BOND MARKET, MR. WALL STREET JOURNAL
    14 May 2014, 06:04 PM Reply Like
  • Rich in NJ
    , contributor
    Comments (81) | Send Message
     
    A rotation out of utilities to economically sensitive stocks could signal strength for the market.
    14 May 2014, 06:32 PM Reply Like
  • WAYLIFE
    , contributor
    Comments (3) | Send Message
     
    Just read the first two comments... That's all...
    14 May 2014, 10:41 PM Reply Like
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