Industrial stocks are being viewed as a potential recession sign, with the theory that struggling construction companies like Caterpillar Inc and Honeywell Inc could indicate a weak economy. However, Jessica Rabe, co-founder of Datatrek, argues that weakness in industrial stocks has not been a reliable recession indicator in the past. She also points out that much of the industrial sector's weakness comes from the top-10 holdings in the S&P Industrials Sector ETF, which are down more than 2% on average YTD. Lockheed Martin and RTX Corp, both top-10 holdings in the industrial sector ETF, are expected to see a significant regression in earnings in 2024 compared to 2023.