Shares of industrial and transportation companies rose as investors sought out cyclical stocks in light of the Biden administration's stimulus plans.
The recent outperformance of the most cyclical stocks on the market -- small caps, industrials and materials -- is likely to continue, according to Steven DeSanctis, small and mid-cap strategist with brokerage Jefferies.
"While absolute valuations are stretched, small caps are still attractive on a relative basis, especially in the context of above-trend GDP growth and 40% earnings growth," said the strategist, in a note to clients.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-20-21 1726ET
