The energy sector has been struggling in recent months, particularly in September. This sector has seen a downward trend over the past one-, three-, and six-month periods, as well as year-to-date and the past 12 months. Energy stocks such as EQT, Coterra, APA, Halliburton, Occidental, ExxonMobil, and Chevron have all experienced significant declines in the past three months. EQT alone is down 22%, while Coterra, APA, Halliburton, and Occidental are all down by double digits.
The banking industry has also been hit hard, with stocks such as Ally Financial, JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley, Wells Fargo, and Bank of America all experiencing losses. JPMorgan, in particular, has lowered its expectations for net interest income for the next year, leading to a 5% drop in its stock. Ally Financial saw a significant 17.6% decrease in its stock price on Tuesday. Despite these challenges, CEO Brian Moynihan of Bank of America expressed confidence in the American consumer, stating that they are stable and not getting worse.
The automotive sector is also facing issues, with companies like BMW, General Motors, Ford, Honda, and Toyota all experiencing declines in their stock prices. BMW reported weakness in Asia and concerns about high costs related to a recent recall, leading to an 11% drop in its stock. General Motors, Ford, Honda, and Toyota have all seen decreases ranging from 2% to 30% from their respective highs.
The cannabis industry has seen some recent highs, with Canopy Growth, Aurora, and Tilray all experiencing gains in the past two days. However, these companies are still significantly below their highs from a year ago. Speculations on how the sector may fare under a Kamala Harris or Donald Trump administration are also being closely monitored.
In terms of market indicators, the bond complex and major indexes are closely watched ahead of the latest inflation data release. The 10-year Treasury note yield is at 3.64%, while the two-year Treasury note yield is at 3.59%. The iShares iBoxx High Yield Corporate Bond ETF is yielding 5.89%, indicating investor sentiment regarding high yield bonds. The Nasdaq 100 and Nasdaq Composite are both down from their respective July highs, while the S&P 500 and Dow Jones Industrial Average are also showing slight decreases.
Real estate investment trusts (REITs) have been performing relatively well, with companies like Crown Castle, Equity Residential, Essex Property Trust, Mid-America Apartment Communities, and UDR hitting multi-year highs. The S&P Real Estate index is up 18% in the past three months, indicating a more stable performance compared to other sectors in the market.
Overall, the stock market is currently facing varying challenges across different sectors. While some industries are experiencing significant declines, others are showing resilience and growth. Investors will need to closely monitor economic data releases and market indicators to make informed decisions in this volatile environment.