Energy sector stocks are shining on Wall Street thanks to strong earnings

Stocks of technology-oriented megacapital companies dropped due to disappointing results. In contrast, stocks of energy companies continued their rapid rise because of strong results.

The numbers for the energy sector in the S&P 500 have been impressive all year long. They rose by 26% just in October, compared to the entire S&P 500's growth of 8%. Oil majors Exxon Mobil and Chevron increased about 29% and 27%, respectively, for the month, while the oil services company Halliburton jumped by 47%.

Growth in the energy sector for the year reached nearly 65%. The positive growth of the S&P 500 in 2022 was observed only in this sector out of 11.

King Lip, chief strategist at Baker Avenue Asset Management in San Francisco said that the reason for the growth was in very high profits. King Lip, chief strategist at Baker Avenue Asset Management in San Francisco said that the reason for the growth was due to very high profits. He added that there's a lot of impulse in this area and a lot of people are looking for what's profitable.

Last Friday, Exxon and Chevron released results that exceeded estimates. The sector's profits were fully illustrated by this data.

Last year, Chevron reported net income of $6.1 billion. The same period this year showed net income of $11.2 billion. Exxon's third-quarter net income was $19.66 billion, almost equal to Apple's net income of $20.7 billion. Apple is the largest U.S. company by market value.