On a bad day for the market, the Nasdaq has fallen 2%, the S&P 500 has slipped 1.9% and the Dow has declined 1.4%. 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 currently ahead of the overall market, down only 1.8%, and its biggest movers are currently:

Company Market Cap Percentage Change
Quanex Building (NYSE:NX) $819.4 million -9.3%
KBR (NYSE:KBR) $4.65 billion -5.2%
James Hardie Industries SE (NYSE:JHX) $4.35 billion -4%
M.D.C. Holdings (NYSE:MDC) $1.79 billion -3.8%
Meritage (NYSE:MTH) $1.35 billion -3.3%
Esterline (NYSE:ESL) $1.99 billion -2.1%
Caterpillar (NYSE:CAT) $58.53 billion -2%

Broker Summary: OptionsXpress Online Trading Platform

Quanex Building (NYSE:NX) is currently trading at a share price of $20.12, a 9.3% decline. With 437,552 shares changing hands so far today, the company's volume is 1.7 times the average volume over the last three months.

Slipping 5.2%, KBR (NYSE:KBR) is currently trading at $29.85 per share. The company's volume for the day so far is 2.3 million shares.

At $47.70, James Hardie Industries SE (NYSE:JHX) has slipped 4%. So far today, the company's volume is 4,577 shares, one times the average daily volume.

Falling 3.8%, M.D.C. Holdings (NYSE:MDC) is currently at a share price of $35.47. The company's volume is currently 337,831 shares. This is on pace to fall short of yesterday's volume of 946,593 shares.

Currently trading at $36.76 per share, Meritage (NYSE:MTH) has fallen 3.3%. So far today, the company's volume is 283,456 shares, in keeping with the average volume over the past three months.

Esterline (NYSE:ESL) has decreased to $63.12 per share, a 2.1% fall. The company is currently trading a volume of 200,066 shares.

Caterpillar (NYSE:CAT) is down 2% to reach $87.67 per share. The company's volume is currently 5.4 million shares for the day, 0.9 times its current daily average.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

Related Articles
  1. Stock Analysis

    Should You Follow Millionaires into This Sector?

    Millionaire investors—and those who follow them—should take another look at the current economic situation before making any more investment decisions.
  2. Professionals

    What to do During a Market Correction

    The market has corrected...now what? Here's what you should consider rather than panicking.
  3. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  4. Mutual Funds & ETFs

    ETF Analysis: Schwab US Broad Market

    Take an in-depth look at the Schwab U.S. Broad Market ETF, an incredibly low-cost fund based on a wide selection of the U.S. equity market.
  5. Professionals

    Tips for Helping Clients Though Market Corrections

    When the stock market sees a steep drop, clients are bound to get anxious. Here are some tips for talking them off the ledge.
  6. Stock Analysis

    The Safest Stocks You Can Invest in Right Now

    These stocks are likely to hold up better than others in a bear market, but there's a twist.
  7. Investing Basics

    5 Reasons to Expect Lower Stock Returns

    Lower stock returns are likely here to stay for some time. Here are five reasons why.
  8. Investing Basics

    What to Cut From Your Portfolio Right Now

    Owning stocks may shortly become too scary for your portfolio. Here's why, and here are some alternatives.
  9. Personal Finance

    Careers: Equity Research Vs. Investment Banking

    Equity research is sometimes viewed as the unglamorous, lower-paid cousin to investment banking. In this article, we compare the two careers.
  10. Investing

    Finding Value in the Selloff Rubble

    Globally and in the United States, stocks are now in correction mode, with the recent erosion in equities in emerging markets and Europe in a bear market.
RELATED TERMS
  1. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  2. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  3. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  4. PT (Perseroan Terbatas)

    An acronym for Perseroan Terbatas, which is Limited Liability ...
  5. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
  6. BHD (Berhad)

    The suffix Bhd. is an abbreviation of a Malay word "berhad," ...
RELATED FAQS
  1. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  4. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  5. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
  6. What happens to the shares of stock purchased in a tender offer?

    The shares of stock purchased in a tender offer become the property of the purchaser. From that point forward, the purchaser, ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!