Oil-related ETFs have been feeling the brunt of declines in crude oil, now trading near $43 per barrel after plunging into a bear market this week.
iPath S&P GSCI Crude Oil Total Return ETN (NYSEARCA: OIL) declined 5.7 percent the past five sessions with shares down 25 percent the past year. In other oil-related ETFs down this week, the SPDR S&P Oil & Gas Equipment & Services (BMV: XES) lost 6.9 percent.
"It is now consensus that global oil markets will swing into surplus in 2018, and the burden of proof that this will not happen lies with the bulls,” Morgan Stanley analyst Ole Slorer said in a note. The firm downgraded the energy industry to In-Line, saying its bear case has a 50 percent downside.
Meanwhile, positive home sales data is lifting shares of the iShares U.S. Home Construction EFT (BMV: ITB), which tracks companies in the homebuilding industry and companies providing materials for construction. The exchange-traded fund, which includes Lennar Corp. (NYSE: LEN), PulteGroup (NYSE: PHM), D.R. Horton (NYSE: DHI) among others, was up 0.4 percent in Friday’s session.
In contrast, the SPDR S&P Homebuilders ETF (NYSEARCA: XHB), which includes a wider array of companies like home furnishing retailers, slipped 0.36 percent Friday. The ETF includes companies like Home Depot Inc. (HD) and Whirlpool Corp. (NYSE: WHR), with were both in the red Friday.
Sales of U.S. new homes increased 2.9 percent in May from April and increased 8.9 percent from a year prior, according to U.S. Commerce Department data.