S&P Capital IQ Raises S&P 500 Target; Likes These Sectors

This produces a negative-to-positive ratio of 6.3, which is higher than the 15-year average. Revenues are seen rising 3.0%. With about 85% of the S&P 500 having reported Q3 results, EPS beats/misses will now likely become potential company specific catalysts, rather than market-moving surprises,” said S&P Capital IQ in the note.

Since the start of October, the Industrial Select Sector SPDR (NYSEArca: XLI) is up 5.1% while the Materials Select SDPR (NYSEArca: XLB) is higher by 3.5%.

That does not mean investors have abandoned defensive sectors. The Consumer Staples Select Sector SPDR (NYSEArca: XLP) is the best performer among the nine sector SDPR ETFs since the start of October with a gain of 6.5%.

GICS Sector Performances & Advised Weightings

Chart Courtesy: S&P Capital IQ. Click to enlarge.