((Translation automated by Reuters using automatic learning and generative AI, please refer to the following warning: https://bit.ly/rtrsauto)) (Resumption of the article published on Friday.)
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Industrial values are the most efficient sector in S&P 500 this year.
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Defense values boost the group; RTX, Lockheed among the reports of the T2 of the coming week.
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A fifth of the S&P 500 must publish its results, including Alphabet and Tesla.
Par Lewis Krauskopf
The industrial sector has shown the way for American actions during an eventful year at Wall Street, but its solidity will be put to the test while the season of results is accelerating.
The industrial values of the S&P 500 .SPRCI, which include aerospace companies, manufacturers of electrical equipment and machines, transport companies and building materials, have won 15 % so far in 2025. This is the best performance since the start of the year among the 11 S&P 500 sectors and a gain more than twice that of the overall index.
The dynamics of the industrial sector and the entire market will be at the heart of the week of second quarter results, which includes reports of more than a fifth of the S&P 500, with Alphabet Googl.o and Tesla Tsla.o, the first of “seven magnificent” megacapital of technology and growth to publish its results.
The S&P 500 has jumped by 26 % since April, investors having gotten rid of the fears of recession which had arisen from the announcement of President Donald Trump’s customs tariffs on the “Liberation Day”.
This season of results “seems to be particularly important because of the rebound that the market has known,” said Chuck Carlson, CEO of Horizon Investment Services. “I think that has aroused certain optimism regarding profits.”
A number of industrial companies will also be under the spotlight.
The actions of the aerospace and defense sectors have boosted the performance of the sector this year, under the effect of geopolitical tensions in the Middle East and in Ukraine and the new expenditure commitments made by Germany and other countries.
The S&P 500 index of the aerospace and defense industry. SPLRCAED has jumped 30 % this year. Companies in the Defense sector that will publish their results in next week include RTX RTX.N, Lockheed Martin
LMT.N
et General Dynamics
GD.N
.
GE Aerospace Ge.N, whose shares climbed approximately 55% this year, noted its procurement forecasts for 2025 on Thursday.
Ge Vernova Gev.n, another industrial company resulting from the inheritance of General Electric last year, saw its actions soaring more than 70 % this year, which makes it the most efficient title in the industrial sector. The results of the electrical equipment manufacturer are expected on Wednesday.
The thrust in favor of the relocation of infrastructure and the expansion of artificial intelligence, which has increased the demand for cooling and automation systems of factories, are two themes that have supported a certain number of titles in the sector, including Eaton Etn.N and Rockwell Automation Rok.N, said Robert Pavlik, main portfolio manager at Dakota Wealth Management.
Another title that supported the industrial sector this year: the Uber Uber.N road transport giant, whose shares are up to around 50 %.
“Unlike many non -technological groups, there are a lot of solid stories here that do not depend on macroeconomic forces to offer solid return yields,” said Nicholas Colas, co -founder of Datatrek Research, in a note on Wednesday. The major industrial capitalizations seem always attractive despite the recent group’s journey, said Colas.
Indeed, while industrial values have always been considered to be closely linked to the fortune of the economy, the decreases of a certain number of values linked to the growth cycle have weighed on the performance of the sector.
The actions of the package delivery companies UPS.N and FEDEX FDX.N have recorded strong drops, while airlines, including United Airlines Ual.O, and road transport companies, such as JB Hunt Transport Services JBHT.O, are also negative for the year.
“There are economically sensitive sectors in industrial companies that are not doing well,” said Walter Todd, investment director at Greenwood Capital.
The other industrial companies which must publish their results in next week are Honeywell
HON.O
, Union Pacific
UNP.N
et United Rentals
URI.N
.
Beyond the results, Wall Street will continue to take an interest in commercial developments before August 1, when the higher customs duties imposed by the United States on many commercial partners will come into force.
Investors will also be sensitive to the news concerning the federal reserve, the president of the Fed, Jerome Powell, being confronted with new pressures from Trump to resign, while the president puts pressure on the central bank to lower interest rates. The next Fed monetary policy meeting will take place on July 29 and 30.
The S&P 500 has climbed approximately 7 % since the start of the year.
The market has shown resilience despite “an incredible amount of uncertainties,” said Eric Kuby, director of investments at North Star Investment Management Corp.
“We continue to be surprised by the good performance of the actions, given what seems to be important winds,” said Kuby.
