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Commodities and the S&P 500 Were Mixed on April 16

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S&P 500’s performance 

The S&P 500 rose ~0.8% to 2,677.84 on April 16, 2018, due to easing geopolitical tensions in the Middle East and optimism about strong 1Q18 earnings results. All of the 11 major sectors in the S&P 500 rose on April 16, 2018. The subsector classification is based on the S&P 500 GICS (Global Industry Classification Standard) indices.

The SPDR S&P 500 ETF (SPY) rose ~0.8% to $267.3 on April 16, 2018. SPY targets to track the S&P 500 Index’s performance.

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S&P 500’s sectoral performance  

The telecommunication services, materials, and utilities sectors rose 1.4%, 1.3%, and 1.3%, respectively, on April 16, 2018. These sectors supported the S&P 500 the most on April 16, 2018.

The energy sector, which accounts for ~6.0% of the S&P 500 Index, rose ~1% on April 16, 2018. The Energy Select Sector SPDR ETF (XLE) rose ~1.0% to $72.14 on April 16, 2018. XLE represents the S&P 500 Index’s energy sector.

The sentiment in the equities and commodities markets can impact each other depending on the magnitude of the moves and various fundamental factors impacting each market.

Commodities  

May 2018 WTI crude oil futures fell 1.7% to $66.22 per barrel on April 16, 2018. Prices fell due to easing geopolitical tensions in the Middle East. The United States Oil ETF (USO) fell ~1.3% to $13.38 on April 16, 2018. USO targets to follow active WTI oil futures’ performance.

May 2018 US natural gas futures rose 0.6% to $2.75 per MMBtu (million British thermal units) on April 16, 2018—the highest settlement since March 13, 2018. Prices rose due to cold weather forecasts. The United States Natural Gas ETF (UNG) rose 0.5% to $22.69 on April 16, 2018. UNG targets to follow active natural gas futures.

The iShares S&P GSCI Commodity-Indexed Trust (GSG) fell 0.5% to $17.08 on April 16, 2018. GSG targets to follow an index composed of a diversified group of commodities futures.

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US Dollar Index  

The US Dollar Index depreciated ~0.41% to $89.4 on April 16, 2018. The Power Shares DB US Dollar Bullish ETF (UUP) fell 0.34% to $23.46 on April 16, 2018. UUP aims to track the performance of the Deutsche Bank Long USD Currency Portfolio Index – Excess Return. The US Dollar Index and commodities, like crude oil and gold, are usually inversely related. 

Series overview  

In this series, we’ll discuss US gasoline demand, Cushing inventories, and US crude oil rigs. We’ll also discuss US crude oil exports and some drivers for oil prices this week.

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