The S&P 500 was on track for its fifth straight weekly gain as the U.S. blue-chip index continues to climb within a well-defined rising channel.
The benchmark was poised for a 0.7% advance for the week in afternoon trading Friday, while the Dow rose 0.5% and the Nasdaq Composite added 1.5% to lead the way among the major indices.
“You have the Federal Reserve and the ECB with a very sharp focus on making sure things don’t stall. Absent some outside shock, I think the path of least resistance for equities is up,” said Jeff Meyerson, head of trading for Sunrise Securities, in a Reuters report.
Volatility remains low with the VIX falling below 15 at one point Friday afternoon, its lowest level since March. [Volatility ETFs: It's Quiet Out There...Too Quiet]
Several commodity-linked ETFs were among the week’s top performers, including funds tracking miners, coal and energy.
Among equity sectors, this week’s standouts were semiconductors and homebuilders. [Builder ETFs Hit 52-Week High After JP Morgan Upgrades]
Conversely, the biggest decliners included ETFs indexed to sugar, VIX futures, natural gas, real estate and Treasuries. [Options Trading Explodes in Bearish Treasury ETF]
The top three unleveraged ETFs this week were iShares S&P Network Index (IGN), SPDR Metals & Mining (XME) and Global X Silver Miners (SIL) with gains of over 5% in afternoon dealings Friday.
The bottom three unleveraged ETFs this week were iPath Sugar (SGG), Active Bear (HDGE) and iPath S&P 500 VIX Short-Term Futures (VXX) with losses of 4% or more.
In next week’s economic data, look for reports on retail sales, producer and consumer prices, homebuilder confidence and housing starts.
Vanguard S&P 500 ETF (VOO)
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.