Both the Dow Jones Industrial Average DJIA, But something else was also at work: Although the first quarter of looked great and estimates for all of are solid, share prices are way ahead of projected earnings growth, making stocks, particularly certain sectors, vulnerable. Earnings growth clocked in at The rest of the year looks good, too: How to determine that?

Brexit Selloff Highlights Strength of U.S. Market - Barron's

I used one of the simplest but most widely accepted valuation metrics, price-earnings ratio to earnings growth the PEG ratio , to separate potential winners and losers. So, its PEG ratio is 1. Also note that the financials sector, which as of last Friday had gained a stunning The Financials Select Sector SPDR XLF, It would presumably gain the most from Trump-initiated reforms.

Materials, too, look attractive, with a These are all holds, in my opinion. Most attractive of all are energy stocks. Wall Street is looking for an astonishing The Energy Select Sector SPDR XLE, As for sectors to sell — the industrials have topped my list since last December. Through last Friday, industrials gained But they trade at a hefty 3. Utilities are grappling with earnings declines and rising interest rates. Consumer discretionary stocks rely too much on a strong economy and consumer staples are over-owned by risk-averse investors hungry for yield.

Their PEG of 5. Follow him on Twitter howardrgold. By using this site you agree to the Terms of Service , Privacy Policy , and Cookie Policy.

Dr. Doom warns of stock market selloff 'avalanche' — RT Business

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U. Intraday data delayed at least 15 minutes or per exchange requirements. ET A Closer Look at Chris Wray, Trump's Pick to Lead FBI.

How to protect your family members — or yourself — from elder abuse.

Money CAN buy happiness, if you spend it right. Forget ping pong, this is the hot new work perk. Updated Uber CEO Travis Kalanick steps down after shareholder revolt.

Corrected Oil finishes at a 9-month low, in bear-market territory. Crude oil losses accelerate, prices slide 0.

European stocks fall, with energy shares lower after oil prices hit 9-month low. Whitbread shares climb 4. Home News Viewer Video SectorWatch Podcasts First Take Games Portfolio My MarketWatch. Retirement Retire Here, Not There Encore Taxes How-to Guides Social Security Estate Planning Events Columns Robert Powell's Retirement Portfolio Andrea Coombes's Working Retirement Tools Retirement Planner How long will my money last?

Economy Federal Reserve Capitol Report Economic Report Columns Darrell Delamaide Rex Nutting Tools Economic Calendar. My MarketWatch Watchlist Alerts Games Log In.

Home Investing Stocks Howard Gold's No-Nonsense Investing Get email alerts. The stock market sell-off is as much about earnings as it is about Trump.

By Howard Gold Columnist. On Wednesday, the U. Related Topics Investing U. Stocks Mutual Funds Exchange Traded Funds. APR Last Week 6 Months Low Interest We Want to Hear from You Join the conversation Comment. MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile. Dow Jones Network WSJ. Dow Jones Industrial Average DJ-Index: NASDAQ Composite Index U. Financial Select Sector SPDR ETF U. Energy Select Sector SPDR ETF U.