The S&P 500 Utilities Sector (XLU) was up 3.10% last week, outperforming SPY by 280bps! Widening spark spreads, driven by higher natural gas prices support profitability for utility companies. While the sector is down ~4.7% YTD as we head into summer, perhaps we are witnessing a sector rotation? Last year, S&P Utilities as a sector returned 11.4%. Natural gas inventories are 33% below last year’s levels as we head into summer which support both higher natural gas prices + power prices going forward. Time to buy the S&P’s most boring sector?
Submitted May 29, 2018 at 11:15AM by QuantalyticsResearch https://ift.tt/2ISeu4c
