Utilities provide sanctuary in stock market selloff
The utilities sector (XLU +0.6%) is one of the few groups trading in the green today, as part of a defensive-oriented trade amid the broader market selloff.
Barclays (LON:BARC) analyst Blerina Uruci sounds slightly bullish, noting that a return to more seasonally normal temperatures occurred in March, leading to a 8.2% rebound in utilities production on the month, and expecting a “more modest increase in April as a return to the normal run rate.”
Instinet technical analyst Frank Cappelleri said earlier that if the S&P 500 hits below 2,380 and the XLU breaks out simultaneously, it could mean that “the environment is indeed changing” – at last check, the S&P was at ~2,366.
Among 10 major U.S. utility stocks: EXC +1%, DUK +0.9%, SO +0.8%, PPL +0.8%, AEP +0.7%, NEE +0.7%, D +0.7%, SRE +0.3%, PCG -0.1%, EIX -0.3%.