General Electric’s 68% gain in H1 leads big-cap industrials (NYSEARCA:XLI)

General Electric (New York Stock Exchange: GEShares rose 68% during the first half of the year, outperforming stocks in other major industrial companies.

Its progress helped lift the SPDR ETF (New York: XLI), whose holdings include some of the largest American companies in the sector. The fund is up 9% over the first six months of 2023.

Industries as a group didn’t keep pace with the broader market, with the S&P 500 advancing 16% to a 52-week closing high (including an 8.3% gain in the second quarter, its third straight quarter of gains).

Technology stocks like Apple (AAPL) helped the Nasdaq Composite Index (COMP.IND) soar 32%, its first half gain since 1983. The Dow Jones Industrial Average (DJI) rose 3.8% during the period.

GE (GE) kicked off the year with GE Healthcare Technologies (GEHC), leaving its energy and aerospace businesses within the conglomerate. Strong demand for air travel after the end of the pandemic has caused airlines to order new planes, and companies like GE (GE) are working to keep up. The company is expected to spin off its energy business, which makes turbines and other equipment, next year.

Demand for the planes has also helped Boeing (New York Stock Exchange: BA) which worked to overcome manufacturing and safety issues, up 11% over the first half.

Outside of commercial aviation, defense contractors such as Lockheed Martin (New York Stock Exchange: LMT) and Raytheon Technologies (New York Stock Exchange: RTX(it lagged during the first half, as did Honeywell International)Nasdaq: Hon). Unresolved supply chain problems have affected companies throughout the aerospace and defense industries.