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Why Industrial Stocks Are Racing Past S&P 500 Despite Trade War

Why Industrial Stocks Are Racing Past S&P 500 Despite Trade War

The protracted trade war between the U.S. and China, plus decelerating global GDP growth, were supposed to hurt industrial stocks. New orders for non-defense capital goods rose by 0.4% from April to May and, overall, businesses are still making expensive investments, wrote Paul Ashworth, an economist at Capital Economics, in a note to clients cited by The Wall Street Journal. Leading industrials include Emerson Electric Co. (EMR), Honeywell International Inc. (HON), Union Pacific Corp. (UNP), CSX Corp. (CSX), Stanley Black & Decker Inc. (SWK), General Electric Co. (GE), and Boeing Co. (BA).