The chart details a grim week for the benchmarks and ETFs we monitor with a score of 5-27. Asset performance has been a struggle, and the negative vs. positive score is barely better over the trailing 1-month period at 6-26 with all four broad equity benchmarks and bond ETFs in the red.
Of the 5 positive asset lines, we see 3 of 5 from energy with E&P (XOP) at #1, Energy (XLE) at #2, and Midstream (AMLP) at #4. Communication Services (XLC) ranked #3 with only +0.51% and the Tech ETF (XLK) rounded out the top 5 barely positive.
The broad benchmarks were all in the red with NASDAQ negative but still in the top quartile. The S&P 500 was negative at the top of the second quartile. The S&P 500 saw 9 of its 11 sectors in the red. The Russell 2000 brought up the rear among benchmarks in the bottom quartile with Midcaps (MDY) only slightly better at the bottom of the 3rd quartile. The breadth of poor performance was highlighted by the Equal Weight S&P 500 (RSP) in the red in the bottom quartile joined by the Equal Weight NASDAQ 100 (QQEW).
The US benchmarks were hardly alone with a large swath of indexes in Europe and Asia also negative the past week. Oil markets and downstream petroleum products are making economic life difficult for many. Sovereign yield curves have been getting no shortage of headlines along with rapidly rising UST yields.
The bottom dwellers in the US include the Homebuilder ETF (XHB) as mortgage pressure continues unabated. The Mortgage News Daily survey edged above 7.1% to end the week. The higher quality Freddie Mac mortgage rate priced at 6.76% on Thursday in its weekly reset, up from 6.35% at this point last year. For housing color, we get 3Q26 earnings this week from Lennar (LEN). LEN is one of the Big 2 of homebuilders. D.R. Horton is a Sept 4Q fiscal year, but LEN has struggled in this market.
The monthly payment burden in mortgages is only getting worse at this point, and the tariff wave and related costs are not going to make pricing strategies any easier with a wide range of supplies costing more. We get a builder 3Q26 earnings wave ahead when the Sept earnings season kicks off.
We also see Transports (XTN) getting hit by aviation fuel costs and as the marginal costs in vacation travel intrinsically shave off some leisure and corporate travel spending at the margin (including angry Canadian snowbird bookings). Diesel costs cannot be making life easier for truckers and freight and logistics operators.
The Materials ETF (XLB) is chemical-heavy in issuer mix, and the results there can vary widely based on feedstocks and product mix. BDCs (BIZD) felt some pressure again this week as investors gear up for floating rate liability pressure and questions on the quality trends of the most leveraged subset.