Sector Winners and Losers week ending 4/23

Original Chart

The S&P 500 had a slight loss for the week, but there were two sectors that soared despite the market.

Real Estate ( XLRE ) ended the week as the top sector, advancing over 2%. Three factors helped the sector breakout and then stay on top the whole week. The economic recovery is a boon for the real estate industry as occupancy rates climb driving demand and prices higher. Interest rates remain low thanks to the Fed’s continued easy money policy, keeping costs low. And in a climate of nervous investors, fearful of new lockdowns around the world, the real estate sector becomes a nice defensive play that has growth potential as well.

Healthcare ( XLV ) was the second best sector of the week. The sector has lagged behind the S&P 500 since the beginning of the year. Positive earnings reports from UnitedHealth ( UNH ) and Johnson & Johnson JNJ ) over the past few weeks gave it the momentum needed to catch up with a 1.81% advance this week.

The only other sectors that had gains for the week were Materials ( XLB ) and Industrials XLI ), both responding positively to great economic recovery news.

At the bottom of the sector list were Energy ( XLE ) and Consumer Discretionary ( XLY ). Energy stocks continue to underperform as oil prices have been dropping in recent weeks. Consumer Discretionary was a big part of the S&P 500 setting records the previous three weeks and was due to pause or pullback this week. Earnings reports from Tesla TSLA ) and Amazon ( AMZN ) next week will have a big influence on the sector performance.


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