The Standard & Poors 500 index logged its best year since 1997, gaining 30 percent. All 10 industry groups that make up the index rose, led by consumer discretionary stocks. Heres a breakdown:
Vendors of nonessential consumer services surged in 2013, boosted by two of the stock markets star performers, Netflix and Best Buy. The gain: 41 percent.
Stocks in this sector gained for a number of reasons.
Some offered the prospect of explosive growth because of new drugs, others offered rich dividends. Health insurers also did well as the Affordable Health Care Act rolled out. The gain: 39 percent.
Delta Air Lines was the biggest gainer in this sector. Airlines do well when the economy is improving as people travel more. The gain: 37 percent.
Banks, insurers and other financial stocks gained on optimism that the industry is healing after the financial crisis and the Great Recession. The gain: 33 percent.
Chipmaker Micron was the biggest gainer in the technology sector as demand for its products rose and its profitability improved. Facebook and Yahoo also had good years. The gain: 26 percent.
Makers of everyday products gained, as food companies, brewers and grocers all rose. The gain: 23 percent.
Sealed Air, which makes Bubble Wrap and other types of packaging, led the gains in this sector after returning to profitability. The gain: 22 percent.
Oil prices rose and U.S.-based drillers increased production. Natural gas producers got a lift as prices rose from the 20-year lows they hit in 2012. The gain: 22 percent.
Power companies have limited growth prospects, but everybody needs power, and these companies pay healthy dividends. The gain: 9 percent.
Phone companies are similar to power companies; steady demand, but with limited prospects for growth. They also pay big dividends. The gain: 6 percent.