This was a high-profile week for the technology sector, which saw some excitement from companies launching new product ideas at the Consumer Electronics Show in Las Vegas. 3D television technology generated a lot of buzz, as did
tablet computer, which will compete with a tablet computer from
to be unveiled Jan. 27.
Outside of the conference,
revealed its Nexus One smartphone, which many were hyping as a device that would transform the sector to the same extent that Google revolutionized Internet search.
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Internationally, the battle by
to take over
, the British confectioner, saw some notable updates, as Warren Buffett warned Kraft about harming shareholder value in pursuit of a deal. Cadbury, in an effort to find alternatives to the takeover, reached out to
, asking the confectioner to place a rival bid.
In Asia, Japan saw its veteran finance minister step down, and the value of the yen continued to decrease against the dollar on expectations that the new minister, Naoko Kan, will support a weak yen policy. China also got attention this week as growing fears of a bubble, especially in housing, led the government to signal tighter credit in 2010.
In America, a disappointing employment report Friday showed that the U.S. economy lost 85,000 jobs in December, sounded a sour note. Expectations were for better numbers after November figures were revised to show that jobs increased by 4,000. The performance of the automotive sector did surprise some, as reports indicated that there was recovery in the sector in 2009, with Ford doing the best out of the American companies.
finished the week up 2.7% while the
and Dow saw gains of 2.1% and 1.8%, respectively.
With that in mind, here are the ETF winners in losers for the week:
Market Vectors Coal
KOL ended 2009 about where it was in mid-November. Shares declined into early December and then recovered but spent most of the time around $34 or $35 per share.
Investors looked to rotate into the sector at the start of 2010, however. KOL closed 2009 at $36.12, but it quickly climbed to $40 per share in the first three days of trading this year, and closed above that level on Friday.
KOL gained 145% last year, but shares would need to rally another 50% to reach pre-crash levels.
Claymore/Delta Global Shipping
While SEA also had a nice recovery in 2009, it gained only 28% for the year and finished below where it traded in June. Shares made a series of higher lows, but spent almost six months in a $12 to $14 trading range. The past week's rally leaves shares higher than they've been since October 2008, but like KOL, another 50% rally would be needed to get prices back to pre-crash levels.
iShares Dow Jones U.S. Oil Equipment
PowerShares Dynamic Oil Services
SPDR S&P Oil & Gas Equipment & Services
Oil prices climbed above $82 a barrel and energy stocks followed.
powered IEZ and XES with double-digit gains for the week.
iPath Grains ETN
iPath Agriculture ETN
PowerShares DB Agriculture
There weren't a lot of losers this week due to a market upswing, but soybeans tanked on account of a Chinese interest rate increase and favorable weather in South America. Higher rates in China are seen as detrimental for commodity imports, while good weather will boost supply. The commodity funds still managed small gains thanks to the performance of other grains.
Soybeans account for 44% of JJG, 23% of JJA and 12% of DBA.
CurrencyShares British Pound
It didn't get pounded, but it was still a bad week for sterling vs. the U.S. dollar. The Bank of England left interest rates at 0.5% and made no change to the quantitative easing policy currently in place. The Australian dollar, which has been strong vs. the U.S. dollar, hit a 25-year high vs. the British pound this week.
iPath Nickel ETN
While copper and aluminum were moving higher this week, nickel headed in the opposite direction.
More on CES 2010
At the time of publication, Dion was long KOL.
Don Dion is president and founder of
, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.
Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.