Sector Winners and Losers week ending 5/7

It was the cyclical sectors that ruled the week. Energy (XLE), Materials (XLB), Financials (XLF) and Industrials (XLI) were the top four sectors of the week.

The cyclical sectors are benefiting from a pick-up in economic activity driving demand for products from building materials, infrastructure and the manufacturing of consumables. Supply has not been able to keep up with the increased demand, driving commodity prices higher. Timber, Copper, Aluminum are all skyrocketing. And demand for oil is increasing as transportation picks back up.

While the Dow Jones Industrial average (DJI) and S&P 500 (SPX) hit new all-time records, there were four sectors that lost for the week. Technology (XLK) and Consumer Discretionary (XLY) fell on Monday thru Wednesday along with the Nasdaq, as investors rotated to re-opening and infrastructure stocks.

Real Estate (XLRE) and Utilities (XLU) were the bottom two sectors. Investors did not have interest in the defensive equity plays this week. Investors remain confident in the equities market, but are playing toward value, re-opening and infrastructure.