Energy subsector ETFs
In the week ending March 15, major energy subsector ETFs had the following performances:
- The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 6.1%.
- The VanEck Vectors Oil Services ETF (OIH) rose 5.7%.
- The VanEck Vectors Oil Refiners ETF (CRAK) rose 3.3%.
- The Alerian MLP ETF (AMLP) rose 1.3%.
Energy subsector rose with oil
Last week, US crude oil futures rose 4.4%. All of these energy ETFs ended in the green. The S&P 500 Index (SPY) rose 2.9%, which might have supported these energy ETFs. On March 8–15, other US equity indexes also rose. The S&P Mid-Cap 400 (IVOO) and the Dow Jones Industrial Average (DIA) rose 1.9% and 1.6%, respectively. These equity indexes have an exposure of 5.9%, 5.1%, and 5.2% to energy stocks, respectively.
However, a contraction of ~$1 in the Brent-WTI spread last week might have a negative impact on CRAK. US downstream stocks account for ~30.1% of CRAK and are sensitive to the Brent-WTI spread.
Energy sector performance
Last week, US crude oil April futures rose 4.4%, while the Energy Select Sector SPDR ETF (XLE) rose 2.5%. XLE had the fourth-highest rise among the sector-specific SPDR ETFs under review.
Last week, the Technology Select Sector SPDR ETF (XLK) rose 4.6%—the largest rise among the sector-specific SPDR ETFs. The Industrial Select Sector SPDR ETF (XLI) fell 0.4%—the only decline among the sector-specific SPDR ETFs.
Most of the sector-specific SPDR ETFs closed in the green last week.
Next, we’ll discuss the top energy gains last week.
In the week ending March 15, upstream stock Laredo Petroleum (LPI) fell the most among the energy stocks under review in this series.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.