Exchange-traded funds tracking energy were among the decliners this week despite an extraordinarily strong week for crude-oil futures.
Crude prices gathered an enormous amount of upward momentum this week and, in quick succession, smashed past the $130 and the $135 marks before easing to a 4.6% surge at $132.19 a barrel. Amid those moves, however, oil-and-gas giants
(XOM - Get Report)
(COP - Get Report)
each lost ground for the week as investors ended the week with profit-taking.
Oil Service HOLDRs
ETF was off 3.2% for the week,
Energy Select Sector SPDR
sank 3%, and
iShares Dow Jones U.S. Energy Sector
gave up 2%.
At the same time, concerns over rising fuel prices stuck it to transportation stocks, and the
iShares Dow Jones Transportation Average
surrendered 4.2% over the past five sessions.
SPDR S&P Homebuilders
fund, meanwhile, plummeted 12.1% over the past week. Friday saw miserable existing-home sales data come to light, with the National Association of Realtors saying the housing backlog is at a 23-year high. Also, on Thursday, the Office of Federal Housing Administration said home prices suffered their worst quarterly drop on record last quarter, according to its purchase-only house-price index.
Financial-space ETFs were also particularly hard hit in a week that saw Oppenheimer analyst Meredith Whitney predict that banks will take writedowns of at least another $170 billion by the end of next year, and that the effects of the credit crisis could linger even past 2009. Also earlier this week,
The Wall Street Journal
said that some banks' hedging strategies -- betting against funds tracking real estate and leveraged loans, for instance -- have backfired amid recovering U.S. shares this quarter.