What Are the Sectors of the Stock Market?
- The sectors in the stock market represent the different sectors of the U.S. economy.dax leicht im minus image by Patrizier-Design from Fotolia.com
Since the stock market is often viewed as a barometer of the economy, it is no surprise that the 10 sectors that comprise the New York Stock Exchange in 2010 reflect the sectors of the American economy. And just as the sectors of the economy perform and out perform at various times during a business cycle, so will the sectors of the stock exchange. - The Discretionary Sector contains companies that provide products or services directed to consumers' discretionary spending. The sector breaks down into five industries: Automobiles and Components; Consumer Durables and Apparel; Consumer Services; Media; and Retailing.
- The Consumer Staples Sector is made up of three industries. This sector contains companies that market products consumers use on a daily or regular basis. The industries in this sector are Food and Staples Retailing; Food Beverage and Tobacco; and Household and Personal Products.
- The Energy Sector comprises companies involved in the production, delivery and supply of energy to consumers and businesses. The sector is one industry, also identified as Energy.
- The Financial Sector includes companies involved in various aspects of the financial marketplace, including personal banking, commercial banking, insurance and investment marketplaces. The Financial Sector comprises four industries: Banks; Diversified Financials; Insurance; and Real Estate.
- The Health Care Sector is made of two industries: Health Care Equipment and Services; and Pharmaceuticals, Biotechnology and Life Sciences.
- Perhaps the most well-known stock index is the Dow Jones Industrial Average. The Dow Jones Industrial Average is a collection of the 30 largest industrial companies in the U.S. On the broader American Stock Exchange, the Industrials Sector is made up of three industries: Capital Goods; Commercial and Professional Services; and Transportation.
- As its name suggests, the Information Technology Sector comprises computer, software and related companies. There are three industries in this sector: Semiconductors and Semiconductor Equipment; Software and Services; and Technology Hardware and Equipment.
- The Materials Sector is one industry group, also named Materials. This sector comprises 128 companies involved in the production and supply of tangible materials used by other companies. Examples of these companies are Neenah Paper, US Gold Corp. and Alcoa Inc.
- Another single-industry sector, this sector contains all companies involved in telecommunication and related functions. Examples of companies within the Telecommunication Sector are AT&T, Level 3 Communications and Verizon Communications Inc.
- As the name indicates, the Utilities Sector contains 94 companies involved in the production and delivery of utilities for households and businesses. Some of the businesses in this sector are American Electric Power, Calpine Corp. and Southern Co.
