Market participants cannot look back on the dour performance
turned in by U.S. stocks last week. The one where the S&P 500
slumped 2.1 percent and turned not only its worst weekly
performance of 2013, but its worst one week slide since
Indeed, those statistics must be put in the rear view mirror
because the week ahead is chock full of marquee earnings reports
and critical economic data points. That means the last week full
trading week of April could be a bumpy one as markets inch closer
to May, a notoriously glum month for equities.
Among other events to keep an eye on, this is what is on the
docket this week: Earnings from downtrodden Apple (NASDAQ:
) on Tuesday, earnings from at least seven Dow components
throughout the week and the first quarter GDP reading on Friday.
With those events and others in mind, here are just a few of the
that will be in play this week.
Energy Select Sector SPDR (NYSE:
) The Energy Select Sector SPDR had been one of the better
performing riskier sector ETFs to start 2013, but the largest
energy ETF by assets has wilted in recent weeks. In the past
month, XLE has lost 4.6 percent amid plunging oil prices due to
elevated concerns about global economic growth. XLE has already
fallen below horizontal support at $76 and is now trading a mere
2.3 percent above its 200-day moving average.
This week could easily set the near-term course for XLE and
related ETFs. Five the ETF's top-10 holdings, including Exxon
) and Chevron (NYSE:
), step into the earnings confessional. XLE's five top-10
constituents that report this week combine for over 43 percent of
the fund's weight.
Traders looking for a short-term hedge on XLE should consider
the ProShares UltraShort Oil & Gas (NYSE:
). DUG gained nearly five percent last week.
Market Vectors Gold Miners ETF (NYSE:
) Admittedly, it feels like one of the gold mining ETFs have been
making an appearance on this list every week for months now.
However, there is good reason to do that again this week. When
Monday rolls around, gold will be just one week removed from its
worst trading day in three decades and
as has been noted
, the yellow metal's slide has been terrible news for the
The Market Vectors Gold Miners ETF lost about 4.5 percent last
week, though it arguably feels like more. GDX is now down almost
26 percent in the past month, though it should be noted some
money has been flowing into this ETF.
Traders willing to commit capital to the miners from the long
side right now ought to be commended for their fortitude. That
fortitude will be put to the test this week as several of GDX's
top holdings report earnings. Bad reports combined with more glum
action in gold futures will certainly weigh on GDX and rival
Market Vectors Biotech ETF (NYSE:
) These are go-go days for biotech stocks and ETFs
and there is little reason to believe the good
times cannot continue
. After all, the catalysts to drive the Market Vectors Biotech
ETF and equivalent funds higher are in place this week.
Interestingly, those catalysts arrive after BBH and the other
major biotech ETFs touched new all-time highs last Friday.
Here is what is on the agenda for biotech this week: Gilead
), Amgen (NASDAQ:
), Biogen (NASDAQ:
) and Celgene (NASDAQ:
) all report earnings. Those are the "big four" of biotech and
they combine for about 46 percent of BBH's weight.
For more on ETFs, click
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