These days, everyone is attuned to economic commentary from corporate America. Market participants will have a chance to hear more when Citi Equities conducts its Basic Materials Conference early next week.
Citi Equities Basic Materials Conference (Monday, Nov. 26 - Wednesday, Nov. 28)
- Why it's important
- The basic materials companies provide the building blocks for producing durable and nondurable manufactured goods. Their comments on demand will help shape perceptions of the economic outlook.
- Market participants tune in closely to the commentary from these deep cyclical companies to try to ascertain where things stand with the business cycle.
- The S&P 500 basic materials sector is down 11.9% year-to-date, versus a 1.2% decline for the S&P 500. It has exhibited relative strength in November, however, gaining 1.6% versus a 2.6% decline for the S&P 500. Company remarks will help dictate whether the recent outperformance can persist.
- The sector has a small weighting (less than 3%) in the S&P 500. It won't be much of a market mover, then, in its own right, yet it can move the broader market as guidance from the companies helps shape the overall outlook for economic growth.
- A closer look
- What's in play?
- Sector ETFs
- Materials Select Sector SPDR ETF (XLB)
- iShares U.S. Basic Materials ETF (IYM)
- Vanguard Materials ETF (VAW)
- Index ETFs
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ Trust (QQQ)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares Russell 2000 ETF (IWM)
- Sector ETFs