S&P 500 industrial stocks at 1-year low

Industrial companies were leaders among U.S. stocks as recently as four months ago. Now they are laggards -- and the shares “remain vulnerable,” Jonathan Krinsky, chief market technician at Bay Crest Partners, wrote in a report Friday. The ratio between the S&P 500 Industrials Index and the S&P 500 shows the reversal. After setting an almost 20-year low in May 2020, the ratio climbed as much as 21% in the next 12 months. The indicator then gave back 58% of the gain through Friday and finished the week at its lowest level in more than a year.

 

SPACs, target companies are left behind as U.S. IPOs rise

U.S. companies along an alternative route to going public are being left by the wayside. The IPOX SPAC Index, tracking special-purpose acquisition companies and the businesses they make deals with, shows as much. The index retreated 8.4% through Tuesday from a peak on Sept. 18, according to data compiled by Bloomberg. Companies that chose initial public offerings over the blank-check route rose 12% in the same period, according to the Renaissance IPO Index. The SPAC slump followed “a bit of froth,” Jonathan Krinksy, chief market technician at Bay Crest Partners LLC, wrote Tuesday in a report.

Gold-mining stocks gaining strength?

Gold-mining stocks may have just begun to gain strength as the precious metal climbs. The ratio between the VanEck Vectors Gold Miners exchange-traded fund and the SPDR 500 ETF jumped 28% for the year through Wednesday, according to data compiled by Bloomberg.

The mining ETF set a seven-year high Wednesday and closed at $32.51. It’s headed to $40 “in the next three to four months, and quite possibly much sooner,” Michael Purves, Tallbacken Capital Advisors LLC’s chief executive officer, wrote Wednesday in a report. Jonathan Krinsky, chief market technician at Bay Crest Partners LLC, set a $42 target Wednesday.