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Energy and tech sectors face downturn, ETFs remain resilient

Published Nov 06, 2023 15:46
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Monday's midday trading reports indicate a downward trend in both the Energy Technology and communications sectors. The Energy sector saw a slump of 1.6%, with significant losses from EQT Corp (NYSE: NYSE:EQT (ST:EQTAB)) and Marathon Oil Corp. (NYSE: NYSE:MRO), down by 5.5% and 3.1% respectively. This occurred despite their year-to-date (YTD) returns of 34.24% and 4.91%.

EQT Corp and Marathon Oil Corp contribute to the Energy Select Sector SPDR ETF (NYSEARCA: NYSE:XLE), which was down 1.3% on the day but has shown resilience with a YTD increase of 3.92%.

The Technology & Communications sector also experienced a dip, declining by 1.2%. SolarEdge Technologies Inc . (NASDAQ: NASDAQ:SEDG) and Take-Two (NASDAQ:TTWO) Interactive Software, Inc. (NASDAQ: TTWO) reported losses of 8.3% and 4.8%, respectively. Despite a substantial YTD loss of 75.71%, SolarEdge Technologies contributes to the Technology Select Sector SPDR ETF (NYSEARCA: NYSE:XLK), which was up by 0.1% midday, boasting a robust YTD return of 40.26%.

Take-Two Interactive Software, on the other hand, reported a positive YTD return of 28.30%. A snapshot of S&P 500 components showed one sector in the green while eight sectors were in the red on Monday.

In an interesting development, insiders appear to be buying into ETFs, with some showing exceptional performance, as highlighted in TSRI videos. Despite the downturn in certain sectors, these investments suggest confidence in the overall market resilience.

InvestingPro Insights

Digging deeper into the Energy Select Sector SPDR ETF (NYSEARCA: XLE), we can glean some valuable insights from InvestingPro. XLE has a market capitalization of 38.63B USD and a low P/E ratio of 3.48, indicating potential value for investors. The ETF has also shown a positive trend in returns over the past six months, with a 9.79% total return.

On the other hand, a couple of InvestingPro Tips suggest caution. XLE suffers from weak gross profit margins, and its valuation implies a poor free cash flow yield. However, in a positive light, XLE has maintained dividend payments for 25 consecutive years, which is a testament to its financial stability. As of Q3 2023, its dividend yield stands at 3.11%.

Investors who desire more detailed insights can find additional tips on the InvestingPro platform, which currently features over 100 unique tips for XLE alone. This comprehensive data can provide investors with a more in-depth understanding of their investments, helping them make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Energy and tech sectors face downturn, ETFs remain resilient
 

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