The Industrial Select Sector SPDR ETF (XLI) is up significantly, driven by strong quarterly earnings reports from major constituents. Honeywell International raised its full-year 2026 guidance after a solid second-quarter performance, noting increased demand tied to the AI data center build-out. Additionally, positive sentiment surrounds defense companies like Lockheed Martin and RTX, which are also reporting earnings and are expected to show strong results due to heightened geopolitical tensions and increased procurement.