Fastenal and Other Big Movers In Capital Goods on October 12, 2012

The market has been slipping so far today. The Nasdaq has slipped 0.2%; the S&P 500 has fallen 0.4%; and the Dow is trading down 0.2%. 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 lagging behind the overall market, down 0.2%, and its current biggest movers are:

Company	Market Cap	Percentage Change
SPX (NYSE:SPW)	$3.39 billion	+2.5%
Texas Industries (NYSE:TXI)	$1.15 billion	-2.4%
TransDigm Group (NYSE:TDG)	$7.49 billion	+2.1%
Fastenal (Nasdaq:FAST)	$13.59 billion	-2.1%
Esterline (NYSE:ESL)	$1.8 billion	-2.1%
MSC Industrial Direct Co (NYSE:MSM)	$4.59 billion	-1.8%
REGAL-BELOIT (NYSE:RBC)	$2.82 billion	-1.6%

Software Summary: Finviz.com Stock Screener

After rising 2.5%, SPX (NYSE:SPW) is currently trading at a share price of $68.53. The company's volume is currently 336,469 shares for the day, 0.6 times the current daily average.

Texas Industries (NYSE:TXI) is trading at $40 per share, down 2.4%. The company's volume for the day so far is 45,196 shares.

Rising 2.1%, TransDigm Group (NYSE:TDG) is currently trading at $148.71 per share. The company's volume is currently 127,131 shares for the day, 0.3 times its average over the past three months.

Slipping 2.1%, Fastenal (Nasdaq:FAST) is currently trading at $44.92 per share. So far today, 904,256 shares of the company's stock have changed hands. At this rate, trading activity will likely be down from yesterday when 6.8 million shares changed hands.

Falling 2.1%, Esterline (NYSE:ESL) is currently at a share price of $56.99. The company's volume is currently 163,692 shares for the day, 0.7 times the average daily volume.

MSC Industrial Direct Co (NYSE:MSM) is currently trading at a share price of $71.80, a 1.8% decline. So far today, 176,097 shares have changed hands.

REGAL-BELOIT (NYSE:RBC) has decreased to $66.50 per share, a 1.6% fall. The company's volume for the day so far is 33,187 shares, 0.1 times its current three-month average.

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. 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.