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The Communication Services Select Sector SPDR Fund (NYSE:XLC) rallied nearly 6% on Thursday, on track to post its second-best performing session so far in 2023.
The interactive media and services industry provided the greatest support to the sector performance, with Meta Platforms, Inc. (NASDAQ:META) rocketing nearly 15% on the strength of upbeat Q1 earnings and improved guidance.
But that's not all: gains were widespread throughout a sector that includes social media giants, telecoms firms, and TV-entertainment stocks. As seen in the chart below, the Communication Services Select Sector SPDR Fund trades more than 30% below its all-time high of $86 per share, reached in September 2021.
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XLC Price Chart
Five Major Contributors To The Communications Services Sector's Performance On Thursday
- Meta Platforms: META gained 14.7% and accounts for 22.6% of XLC holdings, adding about three percentage points to the overall performance. As a result, the social media business accounted for half of the sector's daily performance.
- Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL): Alphabet rose 4.33% and accounts for 24.4% of XLC holdings, contributing for about one percentage point to the overall performance.
- Comcast Corp. (NASDAQ:CMCSA): Comcast climbed 9.7% aided by higher-than-expected earnings and its weight is 4.3%, thus offering a performance contribution of 0.4%.
- Charter Communication, Inc. (NASDAQ:CHTR): Charter Communication soared 7.3% on the day prior to its Q1 earnings report. The stock accounts for 3.9% of XLC holdings and consequently contributed 0.3% to the sector's daily performance.
- Verizon Communication Inc. (NASDAQ:VZ): Verizon climbed 4.7% and its weight is 4.2%, contributing 0.2% to performance.
How Did the Sector Fare the Day After a >5% Daily Performance?
In the past five years, the Communications Services Sector, as monitored by the ETF XLC, had only nine sessions with daily gains greater than 5%.
The performance on the day after such a strong daily performance was mixed, although the results were influenced by the extreme volatility during March-April 2020.
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Feb. 2, 2023: 6.6% gain followed by a 2% loss the next session.
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Nov. 10, 2022: 6% gain followed by a 2.6% rise.
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Apr. 6, 2020: 6.6% gain followed by a 0.7% rise.
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Mar. 26, 2020: 5.7% gain followed by a 3.9% loss.
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Mar. 24, 2020: 6.1% gain followed by a 1.4% loss.
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Mar. 13, 2020: 9% gain followed by a 11.2% loss.
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Mar. 10, 2020: 5.1% gain followed by a 4.3% loss.
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Dec. 26, 2018: 5.6% gain followed by a 0.4% rise.
Photo: Shutterstock
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.