- Utilities shares are on track for their best week since September, as investors speculate that Pres. Trump's planned infrastructure program may take much longer than expected.
- The upward momentum has come as the “outlook for U.S. fiscal stimulus has diminished,” says Dennis DeBusschere, head of portfolio strategy at Evercore ISI. “The S&P continues to rise, but the change in market leadership suggests investors’ growth expectations have weakened."
- The utilities sector was the S&P's second-best performer leading up to the Nov. 8 election as the Fed held back on interest rate increases, but utilities have since climbed only 3.8% vs. a 10.1% gain for the S&P as investors have bet that Trump’s planned infrastructure spending and corporate tax rate cuts would stoke higher levels of inflation.
- So far this week: DUK +5.2%, NEE +2.8%, SO +2.9%, D +4.8%, AEP +4.9%, PCG +4.3%, PPL +3.3%, ED +2.5%, SRE +4.3%, EXC +4.2%, NRG +5%, DYN +2.9%, CPN +2%.
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP