SRE Today, PPI, and General Sentiments
It is officially day 2 of my SRE contract, today was interesting.
SRE did not break $94 today and it closed below my original bought in price, but has remained within the defined channel. See below and its comparison against XLU
While SRE is closer to the support, I feel comfortable given that I see that tug of war between sellers and buyers taking place. Throughout the day it kept reverting back to $93 range and down to $92 - I saw this happen at least twice today. The RSI remains at a solid 46 mark, which does not make me nervous at all. In addition, we see SRE continues to outperform its entire sector, which says a lot about SRE.
In the topic of the entire sector, XLU below is a table with the top ten holdings and their performance today.
| Stock Name | Closing Price Today | Change in $ (Percentage) |
|---|---|---|
| NextEra Energy Inc (NEE) | $91.67 | +$0.13 (+0.14%) |
| Southern Co (SO) | $96.25 | -$0.02 (-0.02%) |
| Constellation Energy Corp (CEG) | $298.95 | -$18.14 (-5.72%) |
| Duke Energy Corp (DUK) | $130.04 | +$0.35 (+0.27%) |
| American Electric Power Co (AEP) | $131.26 | -$1.05 (-0.79%) |
| Sempra (SRE) | $92.78 | -$0.19 (-0.20%) |
| Vistra Corp (VST) | $159.17 | -$5.23 (-3.18%) |
| Dominion Energy Inc (D) | $62.23 | -$0.50 (-0.80%) |
| Exelon Corp (EXC) | $48.84 | -$0.17 (-0.35%) |
| Public Service Enterprise Group (PEG) | $82.33 | -$0.94 (-1.13%) |
While other holdings were in the positive in comparison to SRE, there is a reason for this. SRE announced the selling of $800M notes at 5.20%. I'll get into details another day on what this means, but in short, this creates selling pressure in the short term. Overall, I don't think the change in today's price was too drastic.
Another factor impacting the entire market today is the PPI (Producer Price Index) It will be reported next Wednesday at 8:30am, therefore there may be some preemptive selling as well ahead of the news. This is a monthly report "measuring the average change over time in selling prices received by domestic producers for their output. It serves as a key inflation indicator, tracking price changes from the seller's perspective across mining, manufacturing, and services, often signaling future consumer price changes" source: bls.gov
As mentioned in the past, there are so many factors in finance. I keep learning more and more each day. Forget the stock market alone, there is always something being reported, I wasn't aware of this until now. I need to sit down and keep track of things that impact the market as a whole aside from geopolitical climate.
Overall Sentiments
I think SRE remains a good investment, regardless of where the contract goes (though I feel confident in it), I genuinely like this stock. I think prior to buying, yesterday and today I've grown more confident in it. It's not a too volatile, but it isn't a low moving stock either in my opinion. It's proven to continue to perform better than XLU and almost mirrors SPY.
I do believe that the current state of the market is very unstable and a bit hard to predict, not only because I'm still on the beginning of month three of this, but the geopolitical issues are certainly skewing the market daily. I think part of this is why I feel the need to keep up with global news and financial news for PPI and other financial reports.
I wonder what the market will do tomorrow, and what SRE will do. I will be checking the PPI early before the market opens and see what impact this has in SRE and XLU as a whole. Lastly, I'll dive deeper into the selling of $800 notes and what it truly means. Not a bad day, but it is the day I've felt the most reflective of several pieces moving and their effect on one single stock.
Member discussion