Health Care Gains Suggest Sentiment Shift

By David Russell, reporter at OptionMonster

Health care is the only major sector to earn positive gains since the stock market topped out last month, suggesting that sentiment has shifted to a more traditional bear-market perspective.

The Health Care Select Sector SPDR (XLV Quote) exchange-traded fund is up 1.2% since June 12, compared with a 6.75% decline for the S&P 500. Other traditionally defensive industries such as consumer staples and utilities also have outperformed, while economically sensitive industries such as energy have fared the worst.

"We're getting into the second half, and the numbers are not that great," S&P market strategist Alec Young said in an interview. "People are taking profits on cyclical, high-beta stuff and running to defensives, where sales and earnings are less dependent on what happens in the economy." ...