Forbes correctly identified 2 key outperformers in the materials sector notably copper miner Freeport-McMoran (FCX) and agriculture stock Mosaic Co (MOS). FCX and MOS make up approximately 5.6% of the underlying holdings of XLB.
Some analysts believe that this part of the “Trump effect.” CNBC wrote recently that “Oppenheimer told investors Donald Trump’s policies will benefit the financial outlooks of industrials and materials companies and boost the sectors’ share prices in 2017.”
Regardless of what analysts say, the market has chosen a clear direction. The materials sector chart shows how the sector has risen to all-time highs this week. Although the weekly chart below only shows the last 5 years, the longer term chart has a similar conclusion as the 2008-highs were significantly lower than today’s level.
The Materials Select Sector SPDR (NYSE:XLB) rose $0.15 (+0.29%) in premarket trading Wednesday. Year-to-date, XLB has gained 5.96%, versus a 2.22% rise in the benchmark S&P 500 index during the same period.
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