Utilities lag as oil plummets

Mike Zaccardi, CFA, CMT

Utilities, -3.8%, was the worst performer among the 11 sectors today as stocks fell about 1.6% across the US stock market. Perhaps utility firms were concerned about dislocations in the commodities market as the May prompt-month of crude oil fell well below zero. Utilities typically move inverse to interest rates, and though U.S. treasuries were nearly unchanged, the yield-sensitive sector hit the skids.