MENU
Go to the list of all blogs
Vitalii Liubimov's Avatar
published in Blogs
Oct 08, 2020

10 of the 11 Sector SPDR ETFs Have Fallen in the Last Month with Earnings Just Around the Corner

Many investors probably think the month of October is the worst month for stocks due to the crashes in 1929 and 1987. In fact the month of September has historically been the worst month for equities and this year was no exception. The S&P 500 lost ground during the month and that snapped a five-month winning streak. Looking at the 11 main sectors and the SPDR ETFs that represent them, only the utilities sector moved higher in September.

I took these screenshots from the Tickeron screener for the 11 Select Sector SPDR ETFs. The screener does update during trading hours, so I should point out that I took these shots in the early trading session from October 2. We see that the Utilities Select Sector SPDR (XLU) gained 0.23% in the past month as the top performer of the group. The second best performance was the Real Estate Select Sector SPDR (XLRE), but that was a loss of 2.8%. In fact, the top six of the SPDRs are show below and the sixth place performance showed a decline of 3.91% from the Healthcare Select Sector SPDR (XLV).

This second screenshot shows the worst five performers of the Select Sector SPDRs. Not surprisingly, the Energy Select Sector SPDR (XLE) is the worst performer, and it’s not even close. The XLE lost 16.87% as oil prices fell. That loss was twice as bad as the second worst performance. The Communication Services Select Sector SPDR (XLC) fell 7.96% and the Technology Select Sector SPDR fell 7.93% as the second and third worst performers over the past month.

Looking at the monthly charts for the 11 ETFs, and specifically the monthly stochastic readings, we see that six are in overbought territory and one is near overbought territory. Three sectors have readings in the middle range and one, energy, is closer to oversold territory. The selling in February and March caused most of the indicators to drop, but because it was a short-lived selloff, most of the indicators never even dropped below the 50 level.

The sharp rallies back from the March lows caused many of the indicators to jump back up to overbought territory. Now the September losses have caused seven of the sector SPDRs to generate bearish crossovers in the monthly stochastic indicators. These bearish crossovers haven’t been the most reliable signals over the years, but it is certainly something investors should keep an eye on with so many crossovers taking place at the same time.

Something else investors need to keep in mind is that earnings season is right around the corner. Big banks will get things started on October 13. The outlook for third quarter results is pretty bad. For S&P 500 members, earnings are expected to decline by 21.7% overall. This is compared to Q3 2019.

The energy sector does weigh things down a little and if companies from the sector are removed from the outlook, it improves to -18.1%. The tech sector has the best outlook for earnings results, but that is still a decline of 1.0% on the quarter. The healthcare sector is expected to see earnings decline by 2.2% and that is the second best outlook.

If the low expectations are priced in accordingly, it could actually help stocks once the results are released. When investor expectations are so low, it becomes easier for companies to exceed expectations. Of course a great deal of the drop in earnings is attributed to the COVID-19 pandemic and that impact is expected to diminish in the next few quarters. This means the outlooks companies provide for Q4 and Q1 2021 will be closely watched. The outlooks could be even more important than the results for Q3 in terms of how investors react.

Personally I think investors need to be cautious right now. The rally off the March lows has been rapid and it has occurred on the presumption that the effects of the pandemic will be short lived. If the outlooks point to anything different, we could see declines that erase a great deal of the gains from the last six months.

Related Ticker: XLU

XLU's RSI Indicator ascends from oversold territory

The RSI Indicator for XLU moved out of oversold territory on April 09, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on April 21, 2025. You may want to consider a long position or call options on XLU as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for XLU just turned positive on April 15, 2025. Looking at past instances where XLU's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .

XLU moved above its 50-day moving average on April 22, 2025 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLU advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .

XLU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The 10-day moving average for XLU crossed bearishly below the 50-day moving average on April 04, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Notable companies

The most notable companies in this group are Nextera Energy Inc (NYSE:NEE), Southern Company (The) (NYSE:SO), PG&E Corp (NYSE:PCG), Dominion Energy (NYSE:D), NRG Energy (NYSE:NRG).

Industry description

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Utilities Select Sector Index. In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities. The fund is non-diversified.

Market Cap

The average market capitalization across the The Utilities Select Sector SPDR® ETF ETF is 42.93B. The market cap for tickers in the group ranges from 8.48B to 131.17B. NEE holds the highest valuation in this group at 131.17B. The lowest valued company is PNW at 8.48B.

High and low price notable news

The average weekly price growth across all stocks in the The Utilities Select Sector SPDR® ETF ETF was 11%. For the same ETF, the average monthly price growth was 11%, and the average quarterly price growth was 32%. NRG experienced the highest price growth at 8%, while EXC experienced the biggest fall at -2%.

Volume

The average weekly volume growth across all stocks in the The Utilities Select Sector SPDR® ETF ETF was 4%. For the same stocks of the ETF, the average monthly volume growth was -20% and the average quarterly volume growth was 65%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 67
P/E Growth Rating: 36
Price Growth Rating: 41
SMR Rating: 62
Profit Risk Rating: 38
Seasonality Score: -15 (-100 ... +100)
View a ticker or compare two or three
XLU
Daily Signalchanged days ago
Gain/Loss if bought
Show more...
Ad is loading...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

Category Utilities

Profile
Fundamentals
Details
Category
Utilities
Address
One Lincoln Street Cph0326Boston
Phone
N/A
Web
www.spdrs.com
Ad is loading...
Paper wallets are extremely useful tools – beyond being one of the most popular and secure cold storage methods, they make it simple to transfer coins between owners.You can access the funds on your paper wallet by “sweeping” (or importing) them to either a live wallet (like Trezor or Exodus) or an exchange service (like Coinbase). Most services allow you to import them directly from your wallet’s private key, but there are two key exceptions.
"🚀 PHAXIAM Therapeutics SA Skyrockets +18.82%! Dive into this biotech penny stock's stellar week and the industry's broader movements. 📈🔬
Explore annualized returns of +110% for Day Traders and +50% for Swing Traders using Price Action Trading Strategies (TA&FA) on popular managed healthcare stocks like $BIOS $CI $CNC $ELV $HUM $MOH $UNH. Stay updated on the 1-week change of +3% in this dynamic market.
The ethanol industry encompasses a diverse range of business activities, primarily focusing on the production of ethanol and sugar. Beyond these core products, companies within this theme also engage in the development of related assets, such as fuel storage tanks.
Cisco Systems set to soar! 🚀 A.I. predicts +4% growth in the coming month. Is CSCO the next big move in your portfolio? 📈💰
#trading
The Office Equipment/Supplies sector has emerged as a standout performer in recent times, posting an impressive 6.13% increase in its performance over the past week. This surge in performance is supported by a group of tickers, including $ACTG, $SCS, $HNI, $EBF, and $ACCO, which have collectively displayed a positive outlook. In this article, we will delve into the theme of this sector and analyze the group of tickers within it that are driving this positive momentum.
"IBM Skyrockets: +15.54% Quarterly Jump! Dive into the data behind this tech titan's remarkable rally. 📈🚀"
#investment#trading
The pharmaceutical sector is known for its dynamic nature, with companies often experiencing rapid shifts in performance and sentiment. In the past week, pharmaceutical companies, as represented by a group of tickers including RPRX, CALT, INZY, and HRMY, have seen a noteworthy increase in performance, surging by +3.13%. In this article, we will delve into the details of this trend, explore key indicators, and assess the outlook for these companies.
The term 'challenging disorders' envelops a vast expanse of the healthcare sector, extending from medical devices, facilities to biotechs, and pharmaceutical firms.
The ocean transportation sector has been making waves recently, experiencing a significant performance boost of +3.74% over the past week. In this article, we'll delve into the theme and explore the key tickers within this sector, shedding light on their market capitalization, recent price movements, volume trends, and fundamental analysis ratings.
The medical companies segment has experienced a notable increase in performance, recording a weekly gain of +3.53%. This sector encompasses companies involved in the production and supply of pharmaceuticals and essential medical products, catering to a broad spectrum of healthcare needs. Their product offerings include surgical apparel, gloves, hospital furniture, fluid management solutions, and specialized equipment for cosmetic and surgical procedures.
Tickeron launches AI-powered Stock Picker robots to assist hedge fund managers with sector rotation, growth-focused small-cap stocks, and strategic risk management. Using proprietary FLMs, Stock Pickers offer quant-driven signals and adaptive strategies for long-term growth and investment
Tickeron unveils an intuitive AI trading bot interface, offering tailored strategies for day, swing, and trend traders. From beginners to pros, discover tools designed to optimize trading precision, adapt to market volatility, and provide hedge fund-level insights for smarter investments.
#latest#popular#trading
Learn the 27 essential intraday trading rules that every manual trader should master—and discover how Tickeron’s AI platform applies them automatically for consistent, emotion-free execution and smarter, real-time decision-making.
#investment#trading
A $2 trillion sell-off has investors asking: is 2025 the next dot-com crash or a replay of the 2008 recession? This deep dive compares both scenarios, outlines warning signs, and reveals how AI-powered trading strategies can help navigate rising volatility.
#trading#investment
New to trading? Discover 21 powerful lessons every beginner must learn—and see how Tickeron’s AI Double Agent strategies apply them in real time. From mastering risk to managing emotions, this guide helps you trade smarter, safer, and more confidently.
#investment#trading
From the railroads of the 1920s to the AI giants of 2025, market history shows that extreme concentration often precedes massive bubbles and crashes. This article explores five key turning points and how Tickeron’s AI helps traders navigate today’s bubble-prone landscape.
#investment#trading
U.S. tariff tensions rocked markets this week, sending tech stocks into retreat and safe-haven assets like gold and the yen soaring. As investors brace for major earnings and global policy shifts, volatility remains high across equities, currencies, and commodities.
#investment#trading
Tesla’s Q1 2025 earnings could surprise investors as the EV giant looks to rebound from last quarter’s miss. With lowered expectations and increased volatility, Tickeron’s AI-powered strategy helps traders navigate both upside potential and downside risk.
#investment#trading
Gold is on a historic run—up 29% YTD with record-breaking inflows and growing macro tailwinds. Discover why smart investors are eyeing gold, silver, and miners for opportunity, and how AI trading tools are unlocking new ways to profit from the 2025 gold rush.
#investment#trading