Stock market sectors are a way to divide the stock market up into segments based on which industries companies are in and what kinds of products they produce. Stock market sectors can be used to measure the relative strength of various industries within the economy and to help investors diversify their portfolios.
Although terminology varies slightly between various typologies, a typical sectoral division is as follows:
Communication services - companies that connect people in various ways, including telephone service providers, television and radio companies, internet service providers, and digital media companies
Consumer discretionary aka Consumer cyclical - companies that produce consumer goods and services not absolutely essential for daily life, whose purchase can be delayed when the economy is bad, such as luxury goods, travel, entertainment, automobiles, clothing, etc. These companies are subject to the whims of the business cycle.
Consumer staples aka Consumer defensive - companies that produce consumer goods and services deemed necessary for daily life, such as food, beverages, tobacco products, and personal care items. These companies tend to provide steady results even in economic downturns.
Energy - companies involved in the exploration, mining, refining and transporting of fossil fuels.
Financials - companies that provide financial services, such as banks, investment banks, brokerage firms, and insurance companies
Health care - companies in the health care industry, such as hospitals, health insurance companies, medical device manufacturers, and pharmaceutical companies
Industrials - companies that manufacture large machinery and infrastructure
Information technology - companies that design and sell computer software and hardware
Materials - companies that mine or harvest natural resources and/or process them into basic materials, including lumber companies, miners, chemical companies, and steel manufacturers
Real estate - companies which buy, sell, and manage real estate properties
Utilities - companies that deliver electricity, natural gas, and water to consumers for profit