U.S. major averages have been trading considerable well this week, with both the Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF Trust (SPY) hitting 52-week highs. Much of the gains have been spurred by investor confidence towards trade and tariff outlooks as positive news continues to surface from China and the Trump administration.
In the ETF sector market, sectors had to digest all the Q3 reports from the past few weeks to plan their course of action towards business for the final fiscal quarter. Energy (XLE) appeared to be the weakest sector at the start of the Q3 earnings cycle. Though much of this sector's revenue reports were down, U.S. oil producers Exxon Mobil and Chevron beat expectations. Analyst Mark Newton, founder of Newton Advisors, says that a rally for this underperforming sector may be around the corner.
Utilities (XLU) continues to trade below its 52-week high dues to ongoing Q3 misses. Health Care (XLV) has grown due to favorable earnings from stocks within the sector. Consumer Staples (XLP) and Consumer Discretionary (XLY) have dropped during the earnings season, with U.S. consumer confidence declining recently.
Financials (XLF) hit a 52-week high this week, increasing about 34.4%. Soaring on the back of upbeat U.S. economic data, the Federal Reserve's third rate cut, and progress in trade relations, this ETF continues to see gains in recent markets. Industrials (XLI) have also reached a new 52-week high, with this sector performing robustly despite the manufacturing slowdown. Technology (XLK) also reached a new high this week.
In Commodity ETFs, Gold (GLD) has begun to slide with futures falling to their lowest settlement in three months. The decline has come for the newfound optimism around the 'phase one' trade deal that has been dominating the markets for over a year. United States Natural Gas Fund (UNG), though currently dropping, has seen a recent push towards the positive territory from cold weather moving in. United States Oil (USO) has also shown gains this week.
Finally, in Currency ETFs, the Dollar Index Bullish Fund (UUP) has made gains this week. The Euro (FXE) has not had the same luck, with continued Brexit uncertainty and contraction from Germany's economy lowering values. The Pound (FXB) has also continued its volatility as politics continues to swing the currency.