Energy subsector ETFs

In the week ending June 7, major energy subsector ETFs had the following performances:

  • The VanEck Vectors Oil Services ETF (OIH) rose 3.7%.
  • The VanEck Vectors Oil Refiners ETF (CRAK) rose 1.5%.
  • The Alerian MLP ETF (AMLP) rose 1.1%.
  • The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.9%.

S&P 500 Might Have Helped Energy Subsector ETFs to Rise

S&P 500 and energy ETFs

Last week, US crude oil prices rose 0.9%, while natural gas active futures fell 4.8%. With mixed sentiments in energy commodity prices, the S&P 500 Index (SPY) rose 4.4%, an important factor for these ETFs’ price performance. Last week, the oil rig count fell to a new one-year low. However, based on the relationship between oil prices and the oil rig count, the rig count might bottom out by June, a positive development for the oilfield services subsector.

Moreover, last week, Brent crude oil futures outperformed WTI crude oil active futures. The expansion in the Brent-WTI spread could be positive for US downstream stocks. US downstream stocks account for 27.7% of CRAK.

Energy sector performance

Last week, the Energy Select Sector SPDR ETF (XLE) rose 4.3%. XLE had the fourth-smallest rise among the sector-specific SPDR ETFs under review. An upside in the equity market might have pushed XLE’s returns despite the mixed sentiments in energy commodities. The Materials Select Sector SPDR ETF (XLB) rose 9.1% and outperformed SPDR ETFs. All of the sector-specific SPDR ETFs closed in the green last week.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.