In a week when General Electric Company stock fell after a decent set of results marked by weakness in its oil and gas segment, energy-heavy industrial Dover Corporation's stock rose nearly 6% after reporting in a very similar vein. What happened to Dover, and does this mean market sentiment is changing?
Market expectationsU.S. industrial production turned negative in the last two months of 2015, and heavy industries like mining, energy, and shipping have been weak for some time. In response, the market has increasingly sought so-called safe-haven stocks with relatively favorable end market exposures. General Electric springs to mind as one. Dover does not, and as you can see in the chart below, the former has notably outperformed the latter in the last six months.
Market expectationsU.S. industrial production turned negative in the last two months of 2015, and heavy industries like mining, energy, and shipping have been weak for some time. In response, the market has increasingly sought so-called safe-haven stocks with relatively favorable end market exposures. General Electric springs to mind as one. Dover does not, and as you can see in the chart below, the former has notably outperformed the latter in the last six months.
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