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Last Week in Review: Energy Outperforms Other Sectors

Robert Scott
Last Week in Review: Energy Outperforms Other Sectors

What Happened in the Energy Sector Last Week(Continued from Prior Part)## US equity indexesBetween December 28 and January 4, US equity indexes rose—the S&P Mid-Cap 400 (IVOO), S&P 500 (SPY), and Dow Jones Industrial Average (DIA) rose 2.3%, 1.9%, and 1.6%, respectively. Energy stocks comprise 5.1%, 5.9%, and 5.2% of these indexes.## Oil, broader market, and energy ETFsLast week, US crude oil February futures rose 5.8%, while the Energy Select Sector SPDR ETF (XLE) rose 4.9%. XLE rose the most among sector-specific SPDR ETFs. In addition to oil’s recovery, broader market indexes may have had a significant role in XLE’s rise. Equity indexes have recovered due to easing concerns of an economic slowdown. Last week, the Real Estate Select Sector SPDR (XLRE) fell 0.6%—the most among sector-specific SPDR ETFs. Most sector-specific SPDR ETFs rose last week.## Energy ETFsLast week, major energy subsector ETFs’ performance was as follows: * The Alerian MLP ETF (AMLP) rose 9.3%. * The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 8.6%. * The VanEck Vectors Oil Services ETF (OIH) rose 7.6%. * The VanEck Vectors Oil Refiners ETF (CRAK) rose 3.1%.Broader markets’ and oil prices’ rise may also have been behind these energy ETFs’ increase last week. The Brent-WTI spread expanded by $1.22, a positive development for CRAK. CRAK has a ~32.3% exposure to US refining stocks.Continue to Next PartBrowse this series on Market Realist: * Part 1 - What Goldman Sachs Thinks about Oil * Part 3 - Last Week’s Top Energy Stocks * Part 4 - Oil ETFs Rose More than Oil Last Week