The Technology sector started slowly in 2021 as investors focused on value stocks. But the sector has come on strong in recent months (up 22% year-to-date) and now is outperforming the market (up 20.7%) as well as value sectors such as Consumer Staples (+8%), Utilities (+10%), Materials (+17%), and Industrials (+18%). The sector is the largest in the U.S. market and now accounts for more than 28% of the S&P 500. Over the long term, we expect the sector to benefit from pervasive digitization across the economy, greater acceptance of transformative technologies, and the development of the Internet of Things (IoT). Healthy company and sector fundamentals are also positive. For individual companies, these include high cash levels, low debt, and broad international business exposure. We have an Over-Weight ranking on the Tech sector and think investors should look to allocate up to 30% of their diversified portfolios to the group. Here is how we use our analysts' Tech sector ideas in our Focus List and Model Portfolios.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Value stocks are outperforming growth in 2021 for the first time since 2016. While a recent rally in growth stocks has narrowed the performance advantage for value in the year to date, an environment of historically low interest rates is one in which many investors are still searching for high levels of income -- which often can be found in value stocks. When we look for attractive high-yield/deep-value stocks at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield, and price/cash flow. We also look for companies with clean balance sheets, high levels of profitability, high-quality earnings, and experienced management teams. We seek to avoid companies in industries that are in secular decline, or with dividend yields that are so high that the payout is clearly at risk. Based on numerous requests from clients, we have designed a portfolio of companies that are BUY-rated at Argus Research, have a Financial Strength rating of at least Medium, and have a yield of 3.0% or higher.

Stocks fell on Thursday morning following new weekly employment data and a producer price report that again pointed to high inflation. The Labor Department said that first-time claims for state unemployment benefits fell to 375,000 for the week ended August 7, down from 387,000 a week earlier and in line with the consensus forecast. On the earnings front, eBay shares fell after the company posted mixed 2Q results and offered disappointing third-quarter sales guidance. The Dow fell 0.3%, the S&P 0.3%, and the Nasdaq 0.4%. Crude oil rose to $69 per barrel, while gold traded near $1749 per ounce.

Since the pandemic lows of April 2020, commodity prices generally have been rising -- until the past few weeks. Copper prices doubled from April 2020 to May 2021, but have since dipped 7%. Soybean rose almost 80% from pandemic lows, before also easing 7% in recent weeks. Oil prices only more recently have started to come back to earth, while gold prices have been slipping since August 2020, but have rebounded a bit as COVID fears reignited. Commodity investors are accustomed to volatility. Pre-pandemic, the last time the commodities market bottomed was in January 2016, when oil prices were below $30 per barrel and copper was below $4,500 per metric ton. Looking ahead, we think underlying long-term economic fundamentals are favorable for most commodities (except oil), but project ongoing volatility from the pandemic. A stable/falling dollar helps provide a fundamental foundation for the group. Yet with the virus still spreading, risks remain high and our sector recommendation to the Basic Materials group is Market-Weight. The current market weighting of the sector is 2.7%, and we think investors should consider exposure of 2%-3% in diversified portfolios. We recommend well-managed, financially strong industry leaders that are able to take market share during challenging periods for the chemical, metals, agricultural, and paper industries.

Stocks were mixed on Wednesday morning as investors weighed new consumer price data. The Labor Department said that its consumer price index rose 0.5% in July, down from 0.9% in June and in line with the Reuters consensus forecast. Consumer prices also rose 5.4% from the prior year, slightly above the consensus forecast of 5.3%. The Dow rose 0.5%, the S&P was flat, and the Nasdaq fell 0.6%. Crude oil traded near $67.50 per barrel, while gold rose $20 to $1752 per ounce.

Year-to-date sector leadership remains with the rotation favorites of early 2021. With the long bond spiking from 0.9% at year-end 2020 to 1.75% by the end of the first quarter, growth favorites retreated. But investors wanted to remain invested in equities in a reopening economy, and rotational favorites filled the void.