October’s rally was supported by surprising earnings-beats from across a few sectors. The exchange traded funds that track broader market segments and individual sectors enjoyed last month more than any other in recent memory but that may all get zapped away with a few troubled sectors set to release earnings this week.
1. Energy
Energy actually enjoyed a solid month last month but those expecting those gains to sustain or continue may be in for a rude awakening. West Texas Intermediate crude-oil is already down from its Friday mark and threatening to fall under the $46 a barrel mark on the New York Mercantile Exchange. Brent Crude dipped under $49 Monday as OPEC production looks to be on hold, according to Bloomberg.
The biggest weight however, according to MarketWatch, will most likely be the earnings coming in this week. The chart below, published by Market Watch using FactSet data, shows the big energy players set to announce this week.
One of the most popular energy-sector ETFs, Energy-Sector Select SDPR (NYSEarca: XLE), holds positions in Pioneer Natural Resources (3.46%), Marathon Oil (1.09%), Spectra Energy (1.92%), Noble Energy (1.55%), Apache (1.53%), Cimarex Energy (0.83%), ONEOK (0.53%), Chesapeake Energy (0.37%), Diamond Offshore Drilling (0.16%).
XLE’s profile actually look similar to ETFs we’ll look at further in this article. All of which have been rebounding back towards their long trend lines over the past month.
Other ETF’s tracking the sector include iShares U.S. Energy ETF (NYSEarca: IYE) and Vanguard’s Energy VIPERs (NYSEarca: VDE).