27 Nov

Is Wall Street Capturing Oil’s Rise?

WRITTEN BY Rabindra Samanta

Equity indexes

The S&P Mid-Cap 400 Index (IVOO) rose 1% in the week ended November 24, 2017. Both the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.9% during this period. US crude oil futures rose 3.9% during this period.

Is Wall Street Capturing Oil’s Rise?

The FTSE 100 Index (EWU) and the CAC 40 Index (EWQ) rose 0.4% and 1.3% between November 17 and November 24, 2017, respectively. Brent crude oil active futures rose 1.8% during this time. These indexes’ direct and indirect energy exposure could make them dependent on oil prices to some extent.

SPDR ETFs

Between November 17 and November 24, 2017, the Energy Select Sector SPDR ETF (XLE) rose just 0.7%. The SPDR S&P Telecom ETF (XTL) rose 2.8% and outperformed our list of sector-based SPDR ETFs during this period. The Consumer Staples Select Sector SPDR ETF (XLP) was almost unchanged and underperformed during this period.

Energy ETFs

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and the VanEck Vectors Oil Services ETF (OIH) rose 0.9% and 0.4% in the last week, respectively. During this time, the Alerian MLP ETF (AMLP) fell 1.1%. Thus, these energy ETFs were not able to capture the gain in US crude oil prices during this period.

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