In an earlier post, we took a look at the members of the Dow Jones Industrial Average through our Trend Analyzer Tool. Along those lines, in this post we wanted to provide a quick snapshot of how stocks in the S&P 500 are performing by sector. As many have pointed out, Technology has been a big driver of year to date (YTD) returns for the overall market, and these charts show it. First, the average performance of stocks in the Technology sector YTD has been a gain of 10.2%. The next closest sector (Health Care) has an average gain of less than half of that at 4.2%, while the sector with the third best average return is Financials at less than a third of Tech’s total. After Financials, no other sector has a better average gain than the overall average for the S&P 500 (+0.6%). With Energy leading the way to the downside (-8.4%), in four sectors the average YTD return of stocks in the sector is a decline of 5% or more, and a total of six sectors have average YTD returns that are in the red.
The second way to look at some of the weakness within the market is to look at the percentage of each sector’s components that are up YTD. Here the stratification between tech and non-tech is just as or maybe even more pronounced. Within the Technology sector, just under 83% of stocks in the sector are up YTD (even after Monday’s dump). The next closest sector is Health Care with less than two-thirds. For the S&P 500, just under half of its components are in the black YTD. What’s most striking about the chart below, though, is that there are currently six sectors where two-thirds or more of the sector’s components are down on the year. If Tech wasn’t a quarter of the market, the S&P 500 would be down a lot more on the year.