While the S&P 500 has started to run out of momentum in recent days, there are still a handful of S&P 500 industry groups that are hanging onto gains on a YTD basis.  Leading the way higher, the Retailing Industry Group is up over 5% YTD.  That performance is a bit misleading, though, as the majority of retailers are under enormous pressure.  Here’s a bananas stat for you.  Of the 25 stocks in the Retailing industry group, Amazon.com (AMZN) accounts for 59.4% of the group’s entire market cap.  While AMZN is up 25% YTD, the average performance of the stocks in the group on an unweighted basis is a decline of over 18% and the only other stock in the group that is up YTD is Home Depot (+4%).  Given the divergent paths of AMZN and everyone else, it has seen its share of total market cap increase by ten percentage points just since the start of the year.  The increasing dominance of AMZN over the rest of the retail sector can ultimately become problematic for both. The continuation of the shutdown and AMZN’s dominance only make it more likely that pressure on traditional retailers will increase, but as more retailers shut their doors, the empty stores and out of work employees that follow will undoubtedly lead to increased political pressure on AMZN.

In terms of winners on a YTD basis, behind AMZN Retailing, the only two other groups in the black are Software & Services (4.21%) and Drugs and Biotech (0.76%).  These three industry groups are also the furthest above their 200-DMA with Tech Hardware and Semis rounding out the top five.

On the downside, there’s no shortage.  While just about everyone knows that the Energy sector has been one of the worst-performing groups in the market, you may be surprised to learn that it is not the worst-performing industry group on a YTD basis. In fact, both Autos (-39.74%) and Banks (-40.36%) are both down more than Energy (-38.83%) at this point.  While bank balance sheets were a lot healthier heading into this crisis than they were in the last one, investors haven’t been convinced that they will be able to get through the COVID pandemic without taking a major hit.  Learn more about Bespoke’s premium insights at our membership options page.

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