Two sectors have broken out to records this week, and analysts see opportunity

Two sectors have broken out to records this week, and analysts see opportunity

The S&P 500 is on track for a losing week, but there have been two bright spots in the market.

The industrials and financials sectors broke out to fresh all-time highs Wednesday and Thursday, respectively. Bets on the global economic recovery have given lift to the industrials, while financials are seen as a beneficiary of rising rates.

Delano Saporu, founder of New Street Advisors, pinpoints JPMorgan and Goldman Sachs as two financials stocks that could benefit from both higher yields, which boost banking profitability, and increased trading revenue.

"Those are firms that you probably want to have a second glance at. Although I'm not long them right now, I do think that is something to watch," Saporu told CNBC's "Trading Nation" on Wednesday.

Goldman Sachs is also exploring additional avenues of growth, a strategy Saporu applauds.

"Their online high-yield savings platform, they're lending on there. They also just got into robo-advising with their platform so they're looking for other ways for growth. I think that's super important for people that are looking for possible growth from these firms because they're “¦ past the [pre]-pandemic levels," said Saporu.

JPMorgan and Goldman Sachs both hit all-time highs Thursday. They have risen 20% or more so far this year.

Steve