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Tickers in this Article: TDG, MTH, JOY, MMM, NPK, GD, VMI
The market is currently down, with the Nasdaq declining 0.9%, the S&P 500 down 1.5% and the Dow slipping 1.8%. The capital goods sector is the category of stocks related to the manufacture or distribution of goods. The sector is diverse, containing companies that manufacture machinery used to create capital goods, electrical equipment, aerospace and defense, engineering and construction projects. It is also referred to as the "industrials sector". Performance in the capital goods sector is sensitive to fluctuations in the business cycle. Because it relies heavily on manufacturing, the sector does well when the economy is booming or expanding. As economic conditions worsen, the demand for capital goods drops off, usually lowering the prices of stocks in the sector.

The Capital Goods sector (XLI) is down 1.4%, underperforming the market overall. The current biggest movers in the sector are:
CompanyMarket CapPercentage Change
TransDigm Group (NYSE:TDG)$7.58 billion-11.1%
Meritage (NYSE:MTH)$1.46 billion-5.1%
Joy Global (NYSE:JOY)$6.66 billion-3.7%
3M (NYSE:MMM)$63.97 billion-3.4%
National Presto Industries (NYSE:NPK)$534.3 million-3.1%
General Dynamics (NYSE:GD)$23.69 billion-3%
Valmont Industries (NYSE:VMI)$3.57 billion-2.4%
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Shares of TransDigm Group (NYSE:TDG) are currently trading at $130.98, a steep decline of 11.1%. So far today, the company's volume is 610,677 shares, 1.1 times the current daily average.

Meritage (NYSE:MTH) has decreased to $39.12 per share, a 5.1% fall. The company's volume is currently 412,811 shares. This is more trading activity than there was yesterday.

Slipping 3.7%, Joy Global (NYSE:JOY) is currently trading at $60.63 per share. At 783,202 shares, the company's volume so far today is 0.3 times its current three-month average.

Falling 3.4%, 3M (NYSE:MMM) is currently at a share price of $89.35. So far today, the company's volume is 2.2 million shares.

Currently trading at $75.19 per share, National Presto Industries (NYSE:NPK) has fallen 3.1%. The company's volume is currently 6,171 shares for the day, 0.3 times the average daily volume.

General Dynamics (NYSE:GD) is trading at $65.13 per share, down 3%. So far today, the company's volume is 641,320 shares.

Valmont Industries (NYSE:VMI) has fallen 2.4% and is currently trading at $130.92 per share. The company's volume for the day so far is 45,573 shares, 0.4 times the current three-month average.

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.

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