“Talk about expectations. This quarter saw 12 of our 13 covered companies miss on revenue, 10 either lower FY15 EPS guidance or issue below-consensus FY16 guidance, and none raise growth guidance; yet 10 stocks outperformed during earnings season, 8 on the day of earnings,” said a Bernstein industrial analyst in a note posted by Ben Levisohn of Barron’s.
Industrial-sector exchange traded funds may take an indirect hit from the depressed oil prices as energy producers are forced to cut back on planned projects and spending for manufactured goods. Historically, the industrial sector have rebounded in periods when the U.S. dollar depreciates. Consequently, this should suggests that industrials would be negatively correlated to the dollar.
Industrial Select Sector SPDR
