Whenever investors cast doubt on the hot-growing technology sector, they rotate into a safer, low-growth, dividend-paying sector.
Last month (October), investors fled to Eli Lilly (LLY). The drug manufacturing firm posted strong Q3 results. It reported revenue growth of 38.6% Y/Y ($24.4 billion). Lilly also raised the midpoint of its 2026 full-year revenue guidance by $5.5 billion to a range of $91-$92 billion.
In the retail sector, Walmart (WMT) erased its August-September sell-off. The stock gained around $15/share to close at $123.51. WMT stock is not for income investors, since it yields only 0.80%. But investors are holding Kroger (KO), BJ’s Wholesale (BJ), Dollar Tree (DLTR), and Costco (COST) for their value. The investment paid off: shares are up by 11% or more in the last month.
Energy stocks flourished last month. The sector benefited from the Iran regime’s success in choking the Strait of Hormuz. The Houthis also took control of the Red Sea Coast and Bab al-Mandeb Strait in September. They are determined to elevate gas prices to hurt the Republicans at this week’s mid-term elections.
Investors bid up shares of Exxon (XOM), Chevron (CVX), ConocoPhillips (COP), Occidental Petroleum (OXY), and Devon Energy (DVN) in the last month. ETF investors picked up XLE, which outperformed the technology ETF (XLK) in October.
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