U.S. Markets open in 5 hrs 54 mins

Utilities stocks in unanimous selloff as stock market rally weighs on safe-haven assets, bond proxies

Tomi Kilgore

Utilities stocks are unanimously lower Monday, as the easing of tensions in the U.S.-China trade war, and the subsequent surge in the broader stock market, has led to selling in safe-have assets like Treasurys and bond proxies, like high-yielding utilities. The SPDR Utilities Select Sector ETF fell 0.9% in morning trading with all 28 components losing ground, while the Dow Jones Utility Average shed 1.1% with all 15 components declining. Shares of NextEra Energy Inc. fell 1.4% to lead both sector trackers lower. Among other more-active utilities, shares of Southern Co. shed 1.3%, Exelon Corp. gave up 0.7% and Dominion Energy Inc. ropped 1.1%. Meanwhile, the Dow Jones Industrial Average rallied 245 points with 27 of 30 components gaining ground, while the yield on the 10-year Treasury note rose 0.7 basis points to yield 2.007%. The implied yield on the utilities ETF was 3.14% and on the Dow utilities was 3.00%.