Equity sectors – Industrials are the worst sector in the market, falling close to 3.5%$CREE $MO

Equity sectors – Industrials are the worst sector in the market, falling close to 3.5% on
weakness across the board, but particularly in higher beta machinery names and E&Cs.
Materials are off over 3% and lagging as base metals, steel, and iron ore stocks all get hit
hard on a stronger dollar and slide in their respective commodity prices. Energy is off around
2.9% and underperforming on weakness across the entire space amid a slide in crude
towards $78. Financials are also off around 2.9%, lead lower by regional banks, although
NTRS is higher on reports that HSBC might buy them. Tech is off over 2.6%, lagging the tape
a bit on weakness in semis (SOX off >4.25%) and CREE/VECO (CREE’s earnings).
Discretionary is outperforming the tape a bit on strength in M (earnings), though still off
sharply on weakness in ODP and cruiselines/hotels. Healthcare is outperforming the tape a
bit on CFN’s earnings, although weakness in HMOs and some managed care names weigh
on the group over tax legislation proposed by a few members of Congress. Utilities are off
1.9%, outperforming as investors flock to the lower beta, high dividend names on the selloff.
Staples are off around 1.5% and outperforming on some relative strength in PG, MO, and
SFY. Telecom is the best sector in the market, falling just under 1.35% and led by PCS as
the group outperforms on a defensive bid.