Investors betting on industrial stocks this year have been rewarded, with the group among the best-performing sectors so far, but that strength will be tested in the coming weeks as companies report results.
While industrial stocks and the rest of the market have risen on hopes that a China trade deal is near, excecutives have warned about the conflict’s impact, with the industrials space seen as one of the most sensitive. “Industrials and tech have been two of the sectors that have called out the risks from trade frequently on earnings calls,” said Jill Carey Hall, equity and quant strategist at Bank of America-Merrill Lynch.
Wall Street analysts have been trying to gauge the financial hit to Boeing since the March deadly plane crash in Ethiopia. Boeing’s results are due April 24. Lockheed Martin and other aerospace and defense names are due the same week.