INDUSTRIAL SPDR ACHIEVES BULLISH BREAKOUT TO LEAD MARKET HIGHER -- XLI LEADERS INCLUDE XYLEM, HARRIS, AND EATON -- THE DOW TRANSPORTS ARE CHALLENGING THEIR JUNE HIGH -- TRAN LEADERS INCLUDE FEDEX AND RYDER -- PFIZER SURGES TO NEW RECORD TO LEAD DOW HIGHER
INDUSTRIAL SPDR REACHES FOUR-MONTH HIGH ... While media attention seems to be focused on struggling FANG stocks, investors are putting their money elsewhere. Chart 1 shows the Industrial Sector SPDR (XLI) rising above its June high to reach the highest level in four months. That's a healthy sign for that group and the rest of the market; because it shows that other parts of the market are attracting new money. And that technology isn't the only game in town.
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Chart 1
XYLEM, HARRIS, AND EATON ARE XLI LEADERS... Three standout peformers in the XLI sector are shown below. Chart 2 shows Xylem (XYL) surging 9% to a three-month high. Chart 3 shows Harris Corp surging to a three-month high as well. While Chart 4 shows Eaton Corp (ETN) rising to a six-month high. Other XLI leaders include Johnson Controls (JCI) and Flowserve (FLS).
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Chart 2
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Chart 3
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Chart 4
THE TRANSPORTS NEAR UPSIDE BREAKOUT ... Transportation stocks are also attracting new attention. Chart 5 shows the Dow Transports challenging their June high. An upside breakout appears likely. It's biggest percentage gainer today is FedEx. Chart 6 shows FDX rising above its 50-day and 200-day moving averages. Chart 7 shows Ryder (R) completing an upside breakout last week. An upside breakout by the Dow Transports would put them in sync with the Dow Industrials that broke out last week.
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Chart 5
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Chart 6
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Chart 7
PFIZER LEADS DOW HIGHER ... Chart 8 shows the Dow Industrials rising above their June high last week and still holding above that breakout point. Today's standout Dow performer is Pfizer (PFE). Chart 9 shows the stock surging nearly 3% to a new record. Other Dow leaders today include 3M, Caterpillar, United Technologies, and Boeing. Chart 10 shows Boeing (BA) in a sideways trading range since the end of February. It rose back above its 50-day average two weeks and remains there. Boeing is the highest priced stock in the Dow which is a price-weighted index. That's makes Boeing its most influential stock. Stocks are having a strong day today with ten sectors in the black. Technology stocks are bouncing as well. But not as much as industrials, healthcare, materials, and cyclicals. That suggests that investors may be doing a little rotating from technology growth stocks into other areas of the market that are more value-oriented. It's a good sign to see some other stock groups taking charge for a change.
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Chart 8
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Chart 9
