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May 8, 2019, 1:58 p.m. EDT

Utilities sector the only 1 of 11 S&P 500 sectors to lose ground as Treasury yields bounce

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By Tomi Kilgore

Shares of utility companies were broadly lower Wednesday, with the sector the only one of the S&P 500's /zigman2/quotes/210599714/realtime SPX +0.72% 11 sectors to lose ground, weighed down by a big bounce in Treasury yields. The SPDR Utilities Select Sector ETF /zigman2/quotes/206645117/composite XLU -1.08% shed 1.0% in afternoon trade, with 27 of 28 equity components losing ground. The biggest decliner was NRG Energy Inc.'s stock /zigman2/quotes/208308731/composite NRG -1.01% which slumped 5.1%. Among other more active utilities ETF components, shares of AES Corp. /zigman2/quotes/209256253/composite AES -0.72% lost 2.3%, Excelon Corp. /zigman2/quotes/205982254/composite EXC -1.61% gave up 0.9% and Southern Co. /zigman2/quotes/208000495/composite SO -1.10% shed 0.6%. The lone gainer was Sempra Energy's stock /zigman2/quotes/206074517/composite SRE -0.34% which tacked on 0.6%. Meanwhile, the yield on the 10-year Treasury note rose 3.6 basis points to 2.484%, after falling 10.4 basis points the previous three sessions, as a bounce in the stock market helped calm risk-off trades. Utilities stocks tend to have relatively high dividend yields, so a rise in yields on low-risk Treasurys make them less attractive. The utilities ETF's dividend yield is 3.15%, compared with the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.72% of 1.99%, according to FactSet.

/zigman2/quotes/210599714/realtime
US : S&P US
3,294.61
+23.49 +0.72%
Volume: 2.38B
Aug. 3, 2020 4:54p
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/zigman2/quotes/206645117/composite
US : U.S.: NYSE Arca
$ 60.17
-0.66 -1.08%
Volume: 9.65M
Aug. 3, 2020 4:00p
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/zigman2/quotes/208308731/composite
US : U.S.: NYSE
$ 33.47
-0.34 -1.01%
Volume: 1.53M
Aug. 3, 2020 4:00p
P/E Ratio
2.05
Dividend Yield
3.59%
Market Cap
$8.25 billion
Rev. per Employee
$1.96M
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/zigman2/quotes/209256253/composite
US : U.S.: NYSE
$ 15.12
-0.11 -0.72%
Volume: 3.46M
Aug. 3, 2020 4:00p
P/E Ratio
34.61
Dividend Yield
3.79%
Market Cap
$10.13 billion
Rev. per Employee
N/A
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/zigman2/quotes/205982254/composite
US : U.S.: Nasdaq
$ 37.99
-0.62 -1.61%
Volume: 4.72M
Aug. 3, 2020 4:00p
P/E Ratio
14.18
Dividend Yield
4.03%
Market Cap
$37.62 billion
Rev. per Employee
$1.08M
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/zigman2/quotes/208000495/composite
US : U.S.: NYSE
$ 54.01
-0.60 -1.10%
Volume: 3.93M
Aug. 3, 2020 4:03p
P/E Ratio
17.76
Dividend Yield
4.74%
Market Cap
$57.68 billion
Rev. per Employee
$808,954
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/zigman2/quotes/206074517/composite
US : U.S.: NYSE
$ 124.04
-0.42 -0.34%
Volume: 1.22M
Aug. 3, 2020 4:03p
P/E Ratio
15.54
Dividend Yield
3.37%
Market Cap
$36.41 billion
Rev. per Employee
$693,218
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/zigman2/quotes/210599714/realtime
US : S&P US
3,294.61
+23.49 +0.72%
Volume: 2.38B
Aug. 3, 2020 4:54p
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