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XLU Aug 2024 70.000 put
- Yahoo Finance Video
Summer heat to crank up electricity bills, gas prices: EIA
Summer heat is forecasted to show in the outdoor thermometer and Americans' electricity bills, the Energy Information Administration (EIA) expected costs to rise by up to $173 per month from June to August. Yahoo Finance Senior Energy Reporter Ines Ferré breaks down the regional trends anticipated for electricity and natural gas prices (NG=F) over the summer months. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.
- Yahoo Finance Video
Utilities sector is where the 'AI craze' gets 'out of hand'
On Monday's edition of Good Buy or Goodbye, Interactive Brokers chief strategist Steve Sosnick breaks down two interest rate-sensitive sectors in a higher-for-longer economic backdrop. Sosnick sees the Real Estate Select Sector (XLRE) ETF as a "good buy," explaining that it is "interest rate-sensitive on the way in and the way out. They borrow a lot of money, but they pay a high dividend typically." The ETF covers a diverse set of companies, from offices to apartments to data centers, he says, noting, "it's OK to be in a diverse sector as long as you have winners to help out the losers." He points to the boom of residential real estate as balancing out the struggling commercial side of real estate. Conversely, Sosnick believes utilities (XLU) are "a manifestation of the AI craze that's gotten a little bit out of hand." He explains that while the sector's rate structure is pretty well fixed, the infrastructure is a much greater undertaking, with high costs and a longer time to build. "So if you're piling into utilities as an AI play, it's going to take you years for that to pay off," he explains. For those who already have utilities, he encourages investors to hold, but not buy more. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance
AI has already managed the impossible — making utilities a hot trade: Morning Brief
AI has done a lot of impressive stuff to the stock market. But perhaps most impressively, it's turned "boring" utilities into an exciting trade.
