Energy And Utilities Comes Short Being Wednesday Laggards

By Czarina Ara Lasco

Nov 03, 2016 05:36 AM EDT

Energy Select Sector SPDR ETF (Symbol: XLE) is also down by 1.7% on the day, and up 14.02% year-to-date. On the other hand, ONEOK Inc. is up by 96.57% year-to-date while Pioneer Natural Resources Co is up by 36.55% year-to-date. The combination of the rates of OKE and PXD forms to approximately 5.5% of the primary holdings of XLE.

Following the energy sector as the next worst performing sector is Utilities sector with a 1.4% loss. The most notable large Utilities stocks which are down this midday are NRG Energy Inc (Symbol: NRG) and Sempra Energy (Symbol: SRE) with a loss of 5.2% and 4.9%, respectively.

Down 1.3% in midday trading, and up 13.46% on a year-to-date basis, another ETF closely tracking Utilities stocks is the Utilities Select Sector SPDR ETF ( XLU ).

NRG Energy Inc. declines by 12.40% year-to-date, while Sempra Energy is up 8.49% year-to-date. When combined, NRG and SRE would make up to an approximately 4.9% of the underlying holdings of XLU.

Meanwhile, as response to the signs that just a few days before the vote, the US presidential race is already tightening, safe-haven assets such as gold rallied while global equity prices and the US dollar fell for the second straight day on Wednesday.

The improbability of the results of the incoming election pressed the US Treasury yields lower. On the other hand, crude oil prices drooped on data showing a confirmation U.S. crude stock put together that has created doubts in connection with the global supply excess.

The minimal gap between the Democratic candidate Hillary Clinton and her Republican opponent Donald Trump intensifies the latest decline among major stock markets and sectors.

The S&P/TSX Composite Index fell 1.24 per cent, or 183.21 points to 14,595.11 in Toronto with 10 of the index's 10 main groups declined.

John Canally, an investment strategist and economist for LPL Financial in Boston, said: "There's election uncertainty out there as well as the Fed uncertainty. They didn't say they weren't going to tighten in December, but they didn't say they would. They just kind of left it open-ended."

The Senior Equity Trader at Manulife Asset Management in Boston, Neil Massa, said that the main driver for today is concerns regarding the election. It looked like Clinton was going to win and now that Trump is gaining momentum, it makes people nervous.

The Dow Jones industrial average unofficially fell 76.57 points, or 0.42 per cent, to 17,960.53, the S&P 500 lost 13.77 points, or 0.65 per cent, to 2,097.95 while the Nasdaq Composite recorded a loss of 48.01 points, or 0.93 per cent, to 5,105.57.

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