Industrials' gains put to test as earnings ramp up

NEW YORK: 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, executives have warned about the conflict's impact, with the industrials space seen as one of the most sensitive. "Some of them have seen valuations or estimates come down substantially on those risks." Because of that, industrial companies could have further to gain if there is a trade deal or any reversal to existing tariffs, she said. The bank has an overweight rating on industrials this year.

At the same time, Southwest Airlines Co has cut its financial outlook for the year after being forced to pull its new fleet of 34 Boeing 737 MAX planes out of service, and United Airlines has said it would see an adverse effect on its operations if the jets remained grounded heading into the peak summer travel season.

Those bullish on the industrials sector also argue that its valuation remains attractive despite this year's strong gains.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

S&P gains capped as investors await earnings seasonU.S. stocks headed lower on Monday, following the S&P 500's seven-day winning streak, as Boeing's shares took a hit and investors braced for what ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Wall Street gains, as JPMorgan surges after earningsThe S&P 500 crossed the 2,900 mark for the first time since early October on Friday, boosted by a jump in Walt Disney shares and as bank stocks ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Wall Street ekes out slight gains at open, earnings awaitedU.S. stocks opened marginally higher on Thursday, as investors assessed warnings from major central banks about a global slowdown and looked ahead ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

US: Wall St ekes out slight gains at open, earnings awaited[NEW YORK] US stocks opened marginally higher on Thursday, as investors assessed warnings from major central banks about a global slowdown and looked ahead to the start of the corporate earnings season. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Wall Street flat as growth worries persist; banks gain ahead of earningsU.S. stocks opened marginally higher on Thursday, as investors assessed warnings from major central banks about a global slowdown and looked ahead ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »