Stodgy utilities competing with tech stocks for hottest sector in the market right now

The utilities sector gained 6.61% in January, far surpassing the S&P 500, which finished down 0.2% for the opening month.

Signage is displayed at the FirstEnergy Corp. Bruce Mansfield coal-fired power plant in Shippingport, Pennsylvania.The best two sectors so far this year are the fast-growing tech sector and stodgy old utilities, continuing an odd race that has been going on for more than 18 months., which finished down 0.2% for the opening month. Technology was the next closest sector at 3.89%, and pulled ahead of the utilities for the year with a strong start to February.

The low-interest rate environment has given utility stocks, which on average have a dividend yield of about 3%, a healthy premium to 10-year Treasurys rates and other low-yield fixed income assets, said Chris Gaffney, president of world markets at TIAA Bank. With the cost of debt, fuel and taxes all declining, and the companies becoming more efficient with their labor force, the utilities have taken advantage of cheaper costs as an opportunity to increase that capital base, Karp said. Utilities can go to regulators and argue to keep billing levels the same from the perspective of customers and invest the extra money in upgrades, leading to higher returns to shareholders.

The Federal Reserve is funding the purchase of large blocks of stock to prop up the stock market. Welfare for rich investors and a talking point for Trump. Meanwhile middle America continues to suffer and decline.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks firmer as China's markets recoup some virus lossesAsian stocks bounced on Tuesday with Chinese markets reversing some of their pre...
La source: Reuters - 🏆 2. / 97 Lire la suite »

Stocks Rally For Second Day In A Row Despite Lingering Coronavirus FearsThe stock market today continued to bounce back from last week’s sell off, despite lingering coronavirus fears by skleb1234 skleb1234 Trumps your man 😆😆😆 skleb1234 The only fears reside w/ the left wing media with their doom and gloom predictions. skleb1234 Will fail
La source: Forbes - 🏆 394. / 53 Lire la suite »

Tesla makes a run at biggest market 'bubble' ever“You’re looking at the very start of what’s going to happen with Tesla,” billionaire investor Ron Baron said earlier today. “This could be one of the largest companies in the whole world.” how the fck by stocks? I see more honda's and Toyota's on the road So excited. I really want Musk to be empowered so he can say zany shit on his twitter account more. Tesla
La source: CNBC - 🏆 12. / 72 Lire la suite »

Tech stocks lead indexes higher, Dow jumps 400Tech companies led a broad rally on Wall Street on Tuesday, driving up the Dow Jones industrial average more than 400 points. Trump wins again
La source: latimes - 🏆 11. / 82 Lire la suite »

Tech companies lead US stock rally following global gainsMARKETS: Tech companies and banks lead a broad rally for U.S. stocks, as China took more steps to soften the financial impact of the coronavirus outbreak. after the sotu address, Wed 2/5 stock market crash.... Might wanna mention how much the US fed is pumping into the stock market. Chinese Tech Stocks are on FIRE! Impressive.
La source: ABC - 🏆 471. / 51 Lire la suite »