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Major ETFs Nudge Lower As Biotech Decline Offsets Higher Oil Prices

A computer outage stranded Delta passengers Monday morning, as in this 2009 file photo. (AP)

Oil and gas stock ETFs leapt ahead of sector peers Monday as the major stock indexes closed mildly lower, with declines in the health care sector offsetting higher oil prices.

Crude extended gains for a fourth session, jumping more than 2% as some OPEC members called for production curbs to bring crude supplies in line with demand.

Energy Select Sector SPDR (XLE) popped 1.3% on the stock market today. Top holdings and Dow industrials Exxon Mobil (XOM) and Chevron (CVX) were among the advancers.

SPDR S&P Oil & Gas Exploration & Production (XOP) scored a 2.1% gain and VanEck Vectors Oil Services (OIH) advanced 2.3%.

Despite crumbling crude prices, energy has outstripped all but the utility sector in the S&P 500 so far in 2016, with a 15% gain.

United States Oil (USO), a commodity ETF investing in near-month WTI futures, added 2.4% Monday for its best level in more than a week. West Texas intermediate crude futures settled higher at 43.02 per barrel.

Health care trailed the S&P 500, with funds investing in biotech and pharmaceutical stocks giving up 1% to 2%.


IBD'S TAKE: The outlook for the oil markets continues to be murky. Gillian Rich takes a look at what may be driving the change of heart among some OPEC members on a production freeze.


In other ETF market action, U.S. Global Jets (JETS) added as much as 0.9% Monday before reversing. Delta Air Lines (DAL) was hit by a computer outage that lasted more than six hours, stranding global passengers.

The airline ETF turned lower as investors digested news of a possible OPEC production cut, which could send energy commodity prices higher. The industry benefits from cheaper oil prices. Jet fuel accounts for a major part of airlines' operating expenses, and declining fuel costs benefit this airlines ETF.

The ETF sits 16% below its 52-week high of 26.72.

12 Bellwether ETFs

Here's how major exchange traded funds across major asset classes performed today, with IBD RS Ratings.

The RS (Relative Price Strength) Rating is a measure of a stock's price performance over the last 12 months, compared with all stocks and ETFs, on a scale of 1 to a best-possible 99.

Following daily ETF market action can be key to successful investing:

SPDR S&P 500 (SPY), -0.1%, RS 56

PowerShares QQQ (QQQ), -0.1%, RS 66

SPDR Dow Jones Industrial Average (DIA), 0%, RS 56

IShares Core S&P Mid-Cap (IJH), +0.1%, RS 66

IShares Russell 2000 (IWM), 0%, RS 66

IShares MSCI EAFE (EFA), +0.2%, RS 28

Vanguard FTSE Emerging Markets (VWO), +0.6%, RS 69

SPDR Gold Shares (GLD), -0.1%, RS 73

United States Oil (USO), +2.4%, RS 12

IShares Core U.S. Aggregate Bond (AGG), +0.1%, RS 38

PowerShares DB U.S.$ Bullish (UUP), +0.1%, RS 28

IPath S&P 500 VIX Short-Term Futures (VXX), -2.3%, RS 1