Posts filed under “Index/ETFs”

Odd Data Point: Tech Passes Finance in SPX

How is this for an odd data point? Bank stocks are no longer the largest industry group in the SPX, having been recently bypassed by Technology.

That’s according to this article by Bloomberg News:

"Bank stocks lost their position as the biggest industry group in the Standard & Poor’s 500 Index to technology companies after tumbling 31 percent since 2006.

Computer and software makers led by Microsoft Corp. and International Business Machines Corp. accounted for 16.26 percent of the benchmark for large U.S. companies based on yesterday’s closing prices. Financials, led by Bank of America Corp. and JPMorgan Chase & Co., fell to 16.19 percent.

Banks slid the most among 10 industries in the S&P 500 last year [-21%] and are the worst-performing group so far in 2008, as lower U.S. real-estate prices led to losses on mortgage debt and derivatives approaching $380 billion globally…

Financial shares in the index declined almost 21 percent in
2007, their worst year since a 24 percent drop in 1990. They have
plunged 31 percent since the end of 2006."

I saw that and wondered if this might be some sort of a contrary indicator. I may actually have to pull all of the prior leadership changes in the SPX500, and other indices, and see if there is any significance. I would be curious to see if perhaps there might be a paired trade (i.e., Long Finacials, short Tech)

Regardless, in the S&P500, its now Banks #2, Tech #1.

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Source:
Drop in Bank Stocks Leaves Technology Biggest S&P 500 Industry
Elizabeth Stanton
Bloomberg, May 21 2008
http://www.bloomberg.com/apps/news?pid=20601213&sid=adD4MfoIscYo&

Category: Earnings, Finance, Index/ETFs, Markets, Valuation

Updating the Dow (top ticking Energy?)

The editors at DJ have made a few changes to the venerable index: Out are Honeywell (HON) — which I have owned since the GE deal fell apart, and Altria (MO) which I sill have a small position in from the late litigation era.

In are Chevron (CVX) and Bank of America (BAC), which I don’t. The charts  of the buy and sell signals below are rather interesting.

The adds of Intel (INTC) and Microsoft (MSFT) late in 1999 top ticked the tech boom. Will the Chevron add do the same for energy?

Here’s the WSJ:

"Dow Jones & Co. announced that Bank of America Corp. and Chevron Corp. will replace Altria Group Inc. and Honeywell International Inc. in its benchmark Dow Jones Industrial Average effective Feb. 19.

The change is the first in four years and reflects the index’s continued shift away from industrial firms and into other sectors such as energy and financial services.

Excluding thinly traded Berkshire Hathaway Inc., Bank of America and Chevron are the two biggest U.S. companies by market capitalization which currently aren’t in the Dow industrials."

Interestingly, I noticed our ratings on both drops were "Neutrals"; the adds were split: BAC was a buy, CVX was a sell . . . charts after the jump.

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Category: Index/ETFs, Markets, Technical Analysis

Russell Indices Rebalance Today

Category: Index/ETFs, Investing, Trading

Crude Remains Strong Despite Inventory Build

Category: Commodities, Energy, Index/ETFs, Psychology, War/Defense

Looking at the S&P500 (Relatively)

Category: Commodities, Currency, Index/ETFs, Investing, Markets

Which is Performing Better, the Dow or the S&P500 ?

Category: Data Analysis, Index/ETFs, Investing, Markets

Index Gains Distribution

Category: Index/ETFs, Investing, Markets, Technical Analysis

50th Anniversary of the S&P 500

Category: Index/ETFs, Investing, Markets

Its not China, its the Economy (Stupid!)

Category: Commodities, Currency, Federal Reserve, Index/ETFs, Investing, Markets, Psychology

Goldman Sells GSCI to S&P

Category: Commodities, Corporate Management, Index/ETFs