[video] Quick Take: Utilities Looking Good
NEW YORK ( TheStreet) -- Equities are again pressing record highs on Monday, as investors seem optimistic about upcoming earnings reports.
TheStreet's Debra Borchardt was with Mark Newton, chief market technician at Greywolf Securities, who said that the defensive stocks have started to perk up in recent trading sessions.
The broader market has not demonstrated many signs of weakness, even during the government shutdown days.
He added that without the debt ceiling to worry about until 2014, there's plenty of reasons to be optimistic heading into the end of 2013.However, he did suggest that it was interesting to see the defensive sectors starting to bottom. Defensive names are notorious for their dividends and flight-to-safety tendency when the overall market starts to get shaky. Newton had one possible explanation for the move: Falling interest rates and declining bond yields, two things that weighed on yield-sensitive stocks earlier this year. He said that he likes the Utilities Select Sector SPDR ETF (XLU), which recently made new weekly highs. Newton concluded that the ETF could continue to move higher while equities may consolidate for a few weeks before resuming the uptrend in November and December. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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