Shares of power producers lagged the stock-market rally Monday but remained the leading sector for the year to date.
"We're starting to see a rotation ... the sector in 11th place last year, second place this year," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
"Utilities were the worst, and are now back to the best."
Falling Treasury yields help utilities on many fronts, said Joyce, partly because they are generally "debt laden.
"Also potential rate cuts could be providing some encouragement to utility investors, because they typically buy utilities for income, and, maybe as rates go down, those higher dividends start to look interesting again. Higher dividend [stocks] were certainly out of favor, now maybe there's light at the end of the tunnel."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-08-24 1824ET
