Energy exchange traded funds were the worst-performing sector on Wednesday as top components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) both slipped more than 1% in morning action.
Energy Select Sector SPDR Fund (NYSEArca: XLE) was off nearly 2%. The sector ETF is outperforming the S&P 500 in 2011 but several attempts since March to break through $80 a share have failed, and the fund has dropped below its 50-day moving average.
Exxon and Chevron are the top two holdings and together they account for more than 30% of the energy ETF.
The largest oil ETF, U.S. Oil Fund (NYSEArca: USO), was also down about 2% on Wednesday morning. The oil ETF has lost more than 6% over the past week as a margin hike and a strengthening greenback have weighed.
Energy Select Sector SPDR Fund
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.