Thursday's Top Sectors: Consumer Goods and Utilities
Consumer Products Sector Performance: Consumer Products stocks are the best performing sector, down only 0.2%, with Brown-Forman Corp and Clorox Co gaining 2.0% and 1.8%, respectively, despite both being down significantly year-to-date.
Utilities Sector Performance: The Utilities sector follows closely, down 0.3%, with Edison International and PG&E Corp showing gains of 1.4% and 0.7%, respectively, while both are also down year-to-date.
ETFs Overview: The iShares U.S. Consumer Goods ETF is down 0.1% today but up 5.01% year-to-date, while the Utilities Select Sector SPDR ETF is down 0.3% today and up 18.79% year-to-date.
Overall Market Snapshot: None of the sectors are up in afternoon trading, with nine sectors experiencing declines, indicating a generally negative market trend.
Trade with 70% Backtested Accuracy
Analyst Views on EIX
About EIX
About the author

- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
- Rating Upgrade: UBS upgraded Xcel Energy (XEL) from Neutral to Buy with a price target increase from $81 to $89, forecasting a 9% EPS growth rate that exceeds the market's sub-7% expectations, indicating a significant undervaluation by investors.
- Data Center Load Growth: Xcel raised its high-probability data center load forecast to 4 GW from 2 GW during its year-end call, highlighting increasing investment opportunities in the data center sector, which enhances the sustainability of its future growth.
- Increased Investment Opportunities: The analyst noted that Xcel is seeing growing investment opportunities from SPP transmission and state resource plans, particularly with an expected 2.1 GW load addition in Colorado, providing robust support for future earnings growth.
- Minor Liability Resolution: Regarding the Smokehouse fire liability in Texas, the analyst expects the resolution to incur less than $100 million in costs, alleviating financial burdens on the company and further enhancing its profitability and market appeal.
- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
Edison International: The company has made significant moves in the energy sector, focusing on sustainability and innovation.
UBS Cuts: UBS has announced cuts that may impact its operations and workforce, reflecting broader trends in the financial industry.
- Edison International Update: The company has raised its star target price to $78 from $70.
- Market Implications: This adjustment reflects a positive outlook for Edison International's performance in the market.
- Redemption Announcement: Southern California Edison has announced the redemption of all outstanding Series K Preference Stock on March 15, 2026, at a price of $25 per share plus accrued and unpaid distributions, which is expected to impact investor cash flows.
- Trust Securities Impact: This redemption will lead SCE Trust V to redeem all of its 5.45% Fixed-to-Floating Rate Trust Preference Securities, with holders ceasing to accrue distributions after the redemption date, reflecting the company's strategy for optimizing its capital structure.
- Operational Process Details: Trust Preference Securities held through The Depository Trust Company will be redeemed according to its procedures, and holders are advised to contact their brokers for further information to ensure a smooth redemption process.
- Company Background: Southern California Edison, a subsidiary of Edison International, is one of the largest electric utilities in the U.S., serving approximately 15 million people through 5 million customer accounts across a 50,000-square-mile service area, highlighting its significant role in the energy market.







