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Boeing (NYSE:BA) and United Parcel Services (UPS) felt the January effect with the biggest gains among large-cap industrial companies. Industrial-sector stocks didn’t keep pace the broader market, and some defense stocks slumped.
The Industrial Select Sector SPDR ETF (XLI), whose holdings include the biggest companies in the manufacturing sector, finished the month with a 3.7% gain, compared with the 6.2% advance for the Standard & Poor’s 500 stock index (SP500).
Among the ETF’s biggest holdings, Boeing (BA) rose almost 12% as the aircraft giant continued a rally that began after its stock chart formed a double bottom at the end of September. Boeing (BA) in January delivered on its guidance for positive cash flow, and it reported a 20% gain in revenue from a year earlier amid strong demand for new jets.
Northrop Grumman (NYSE:NOC) moved in the opposite direction with its 18% decline in January. The aerospace and defense company beat estimates, but investors may have been concerned about potential losses from developing its next-generation stealth bomber. Goldman Sachs and Cowen downgraded the company in January.
| Company (Ticker) | Monthly change |
| Boeing (BA) | 11.8% |
| Caterpillar (CAT) | 5.3% |
| Deere (DE) | -1.4% |
| General Electric (GE) | -4.0% |
| Honeywell International (HON) | -2.7% |
| Industrial Select Sector SPDR ETF (XLI) | 3.7% |
| Lockheed Martin (LMT) | -4.8% |
| Northrop Grumman (NOC) | -17.9% |
| Raytheon Technologies (RTX) | -1.1% |
| Union Pacific (UNP) | -1.4% |
| United Parcel Service (UPS) | 6.6% |
