RTX - Deere's 8.4% decline in April is biggest among large-cap industrials
2023-04-28 17:07:44 ET
Deere’s ( DE ) stock slumped 8.4% in April for the biggest decline among large-cap industrial stocks.
The Industrial Select Sector SPDR ETF ( NYSEARCA: XLI ), whose holdings include the biggest U.S. companies in the manufacturing sector, fell 1.2% for the month. [Payroll company Automatic Data Processing ( ADP ), a top 10 holding for the fund, is classified as an industrial.]
The decline contrasted with gains for the broader market. The Standard & Poor’s 500 stock index ( SP500 ) rose for the second straight month in April with a 1.5% gain. The Dow Jones Industrial Average ( DJI ) and the Nasdaq Composite ( COMP.IND ) also rose for the month.
Deere ( DE ), the world’s biggest maker of farm machinery, hit a six-month intraday low on Thursday morning and trimmed its loss throughout the remainder of the day and Friday. It’s down 11% since the beginning of the year.
Research firm Hedgeye in March picked Deere ( DE ) as its top short-sale idea, saying financial pressures on regional banks were likely to limit credit and dampen machinery orders.
United Parcel Service ( UPS ) this week had the biggest daily decline since 2006 after disappointing investors with a Q1 earnings update. The selloff led Wolfe Research to upgrade the stock on its beaten-down valuation.
Honeywell International ( HON ), General Electric ( GE ) and Raytheon Technologies ( RTX ) all posted gains in April. Each company reported Q1 results that were better than what Wall Street analysts had estimated on the strength of their aerospace businesses. The recovery in air travel after the end of pandemic lockdowns is driving demand for new planes and repairs of existing fleets.
Boeing ( BA ) also is seeing strong demand for aircraft. Its stock fell in April as the company warned of delays in deliveries for its best-selling 737 Max jetliner after a supplier discovered a manufacturing defect. The company this month reaffirmed its plan to increase output of the 737 Max by this summer.
| Company (Ticker) |
| Monthly change (April) |
| Automatic Data Processing ( ADP ) |
| -1.2% |
| Boeing ( BA ) |
| -2.6% |
| Caterpillar ( CAT ) |
| -4.4% |
| Deere ( DE ) |
| -8.4% |
| General Electric ( GE ) |
| 3.5% |
| Honeywell International ( HON ) |
| 4.5% |
| Industrial Select Sector SPDR ETF ( XLI ) |
| -1.2% |
| Lockheed Martin ( LMT ) |
| -1.7% |
| Raytheon Technologies ( RTX ) |
| 2.0% |
| Union Pacific ( UNP ) |
| -2.7% |
| United Parcel Service ( UPS ) |
| -7.3% |
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Deere’s 8.4% decline in April is biggest among large-cap industrials