Please ensure Javascript is enabled for purposes of website accessibility

Stock ETFs Rise Friday but Close Week in the Red

By ETF Trends - Updated Apr 6, 2017 at 10:23PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Gold hits another new high, and tech shares struggle.

U.S. stock exchange-traded funds (ETFs) pushed higher on Friday as encouraging economic signs overcame rising inflation data and disappointing technology results, but finished the week slightly down.

  • Gold futures climbed Friday to close at a record $1,486 an ounce, up 0.8% for the week, with silver hitting its highest level in over three decades, as inflation concerns buoyed investment demand for the precious metals. "Gold prices remain supported on the back of its appeal as a hedge against inflation, amidst emerging inflationary concerns in the U.S., Europe and China," analysts at ICICI Bank wrote in a note to clients. The day's settlement price beat out the previous record close of $1,474.10 an ounce seen a week ago. Silver prices have rallied almost 38% year to date. They marked a gain of 4.8% for the week after closing last Friday at $40.61. "We view upside inflation risks as more likely than positive growth shocks in the U.S.," analysts at Deutsche Bank wrote in a weekly report issued Friday. "This should mean that when the [Federal Reserve] eventually tightens monetary policy, it will not derail the rally in precious metals." The SPDR Gold Shares ETF (NYSE: GLD) gained almost 1% on Friday.
  • Oil rose on Friday, with Brent crude surging past $123 a barrel, as improving U.S. consumer confidence and industrial production eased concerns about rising fuel costs. Concerns about the impact of pricey fuel on the economic recovery and consumption hit prices earlier in the week, knocking Brent off 32-month highs. It had risen over $126 a barrel on expectations the conflict in Libya would lead to a prolonged disruption of the OPEC nations' supplies. A U.S. government report showed underlying inflation pressures remained contained in March, while a survey showed April consumer sentiment rose more than expected. Investors have been concerned higher energy and food costs would slow consumer spending. Oil prices have "pushed ahead" of supply and demand fundamentals and near-term downside risk has risen after prices climbed to "exceptionally high levels," Goldman told clients in the latest note, while it maintained its outlook for rising oil prices over a longer, 12-month horizon, on growing global fuel demand. The ProShares Ultra DB-UBS Crude Oil ETF (NYSE: UCO) surged almost 2% Friday.
  • Technology shares had a difficult week. Google (Nasdaq: GOOG) highlighted weaker trading in tech stocks Friday as the Internet giant's shares fell 7% following first-quarter earnings that fell short of Wall Street estimates. Technology stocks also slipped on Thursday, as shares of Intel (Nasdaq: INTC), Hewlett-Packard (NYSE: HPQ), and Microsoft (Nasdaq: MSFT) declined on news of a weakening personal-computer market. On Wednesday, both IDC and Gartner reported a decline in first-quarter PC shipments because of weaker consumer demand and the rise of tablets. Meanwhile, Barclays Capital lowered its fiscal third-quarter revenue target for Microsoft, saying the PC data "underscores persistent headwinds that Microsoft's Windows business is likely to face in coming quarters, chiefly a maturing PC market but more ominously share erosion to new form factors such as tablets and smartphones." The Technology Sector Select SPDR ETF (NYSE: XLK) ended flat on Friday.

Gregory A. Clay contributed to this article.

More from ETFTrends:

Use the Fool's My Watchlist service to follow our coverage of any stock -- or ETF -- you like. Follow the links to add GLD, XLK, and UCO.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

HP Inc. Stock Quote
HP Inc.
HPQ
$34.44 (-2.60%) $0.92
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$256.48 (-3.17%) $-8.41
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,240.15 (-3.30%) $-76.52
Intel Corporation Stock Quote
Intel Corporation
INTC
$37.78 (-2.20%) $0.85
SPDR Gold Trust Stock Quote
SPDR Gold Trust
GLD
$169.62 (-0.17%) $0.28
The Select Sector SPDR Trust - The Technology Select Sector SPDR Fund Stock Quote
The Select Sector SPDR Trust - The Technology Select Sector SPDR Fund
XLK
$128.58 (-3.00%) $-3.97
ProShares Trust II - ProShares Ultra Bloomberg Crude Oil Stock Quote
ProShares Trust II - ProShares Ultra Bloomberg Crude Oil
UCO
$46.65 (4.74%) $2.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.