The market has been slipping so far today. The Nasdaq is trading down 0.4%; the S&P 500 has slipped 0.2%; and the Dow has decreased 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 ahead of the overall market, down only 0.3%, and its biggest movers are currently:
|Company||Market Cap||Percentage Change|
|Vulcan Materials (NYSE:VMC)||$6.42 billion||+2.6%|
|Sodastream (Nasdaq:SODA)||$721.8 million||+2.5%|
|Thor Industries (NYSE:THO)||$2.31 billion||-2.5%|
|Eagle Materials (NYSE:EXP)||$2.73 billion||-2.4%|
|DXP Enterprises (Nasdaq:DXPE)||$646.9 million||+2.4%|
|Ryland Group (NYSE:RYL)||$1.52 billion||-1.8%|
|Quanta Services Inc (NYSE:PWR)||$5.66 billion||+1.7%|
Vulcan Materials (NYSE:VMC) has moved up 2.6% and is currently trading at $52.66 per share. At 435,216 shares, the company's volume so far today is 0.8 times its current daily average.
Sodastream (Nasdaq:SODA) has risen 2.5% to hit a current price of $39.62 per share. The company is currently trading a volume of 466,193 shares.
Falling 2.5%, Thor Industries (NYSE:THO) is currently at a share price of $37.02. At 293,966 shares, the company's volume so far today is in keeping with its current three-month average.
Eagle Materials (NYSE:EXP) is trading at $52.92 per share, down 2.4%. So far today, the company's volume is 288,966 shares. This is a sign that there will be less trading activity than there was yesterday.
DXP Enterprises (Nasdaq:DXPE) has increased to a share price of $48.30, a 2.4% rise. At 13,969 shares, the company's volume so far today is 0.3 times the average daily volume.
Ryland Group (NYSE:RYL) has fallen 1.8% and is currently trading at $33.28 per share. So far today, the company's volume is 362,242 shares.
Quanta Services Inc (NYSE:PWR) is at $25.83 per share after an increase of 1.7%. So far today, the company's volume is two million shares, 1.1 times the average volume over the last three months.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. 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.