So far today, the Nasdaq has decreased 0.7%, the S&P 500 has moved little and the Dow has climbed 0.3%. 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.
These are the biggest movers in the Capital Goods sector (XLI) (+0.2%):
|Company||Market Cap||Percentage Change|
|US Silica Holdings (NYSE:SLCA)||$762.6 million||+6.4%|
|TransDigm Group (NYSE:TDG)||$6.97 billion||-3.6%|
|James Hardie Industries SE (NYSE:JHX)||$4.21 billion||+2.8%|
|Lindsay (NYSE:LNN)||$986.5 million||-2.2%|
|Granite Construction (NYSE:GVA)||$1.18 billion||+2.2%|
|Esterline (NYSE:ESL)||$1.87 billion||+2.1%|
|Chart Industries (Nasdaq:GTLS)||$1.87 billion||-1.8%|
Broker Summary: Charles Schwab Online Brokerage
US Silica Holdings (NYSE:SLCA) has moved up 6.4% and is currently trading at $15.36 per share. This morning, the company is trading a volume of 264,896 shares.
TransDigm Group (NYSE:TDG) is currently trading at a share price of $130, a 3.6% decline. The company's volume is currently 845,270 shares for the day, 1.3 times the current three-month average.
After an increase of 2.8%, James Hardie Industries SE (NYSE:JHX) has reached a current price of $49.50. The company's volume for the morning is 1,583 shares. This is 0.4 times the average daily volume.
Lindsay (NYSE:LNN) has decreased to $75.85 per share, a 2.2% fall. At 30,501 shares, the company's volume so far today is which is likely to result in less activity than yesterday's volume of 83,493 shares.
Granite Construction (NYSE:GVA) has risen 2.2% to hit a current price of $31.06 per share. The company's volume for the day so far is 101,164 shares.
Esterline (NYSE:ESL) is at $61.91 per share after an increase of 2.1%. So far today, the company's volume is 471,735 shares, 1.8 times the average volume over the last three months.
Slipping 1.8%, Chart Industries (Nasdaq:GTLS) is currently trading at $61.35 per share. So far this morning, 129,484 shares have changed hands. This is 0.3 times its current daily 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. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.