The Financial Select Sector SPDR (NYSEArca: XLF), the largest financial services ETF, is usually the second-best of the nine SPDRs in April, delivering an average fourth month gain of more than 3%, according to CXO data. XLF’s April bullishness is an extension of the ETF’s strength that starts in March when it is historically the best of the nine SPDRs. [Two Sector ETFs for March]
However, XLF was a disappointment last month, falling 1.3% despite encouraging buyback and dividend news that was the result all of the major banks passing the latest Federal Reserve stress test. While FactSet anticipates overall S&P 500 companies to experience a 4.6% contraction in profits, the first quarterly decline in profit growth since 2009, John Butters, senior earnings analyst at FactSet, points out that financials could post positive results of 8.4% ahead on the improved mortgage lending, reports Wallace Witkowski for MarketWatch.
On the negative side of the ledger, are the Technology Select Sector SPDR (NYSEArca: XLK) and the Consumer Staples Select Sector SPDR (NYSEArca: XLP), which are usually the two worst SPDRs in April. However, the term “worst” should be loosely here as XLK and XLP both post average April gains north of 1%, according to CXO data.
Industrial Select Sector SPDR
