GS Novak GS U.S. Industrials & Materials tough EPS start

GS Novak - GS U.S. Industrials & Materials | tough EPS start 14 Oct 2026 Ryan Novak · Goldman Sachs · Sales & Trading 14 Oct 2026

Goldman Sachs FICC and Equities

GS SECTOR SPECIALISTS: U.S. Industrials & Materials

All references to “we/us/our” refer to the views and observations of the desk.

Industrials hit hard today down 140bps underperforming broader markets off 80bps with materials holding in better but still down 60bps. CPI at the heart of today’s sell off – full GIR take below. Seeing the 10-year spike to 5.25%. Zooming out staples and healthcare leading while technology, communications lagging. Quality outperforming the factor board (more below) while beta and high beta momentum getting hit. In terms of subsectors defense, aerospace holding in relatively well while data center, airlines and housing getting hit.

Inbounds heavy as to why AI / data center selling off so much … DPC weakness several days in a row … feedback to TT upgrade, CARR LII downgrade … set up for JBHT … GEV weakness in particular … HXL RTX HWM HEI GE relative strength … is MMM shorted or owned … CDNL magnitude of the last few days …

Bloomberg as of 10/14/26. Past performance is not indicative of future results.

Bloomberg as of 10/14/26. Past performance is not indicative of future results.

What’s Moving Since the Open?:

Bloomberg as of 10/14/26. Past performance is not indicative of future results.

CPI: Core CPI increased by 0.33% in September, above expectations. The upside surprise was partly driven by a firmer-than-expected reading in the shelter category, with OER increasing by 0.35% month- over-month and contributing to the core by about 5bp more than we expected. The strength in OER was