MLPs had a very good week, significantly outperforming the broader U.S. stock market, with a substantial portion of the weekly returns coming from Friday’s rally. The market cap weighted MLP Index and the equal-weight MLP Index were in-line with each other, implying that this week’s positive trading had broad participation. This week’s rally may
The MLP Index was up, then down this week, to close out almost exactly where it started. The S&P 500 was up sharply, then down a bit, to close the week up 1.3%. The equal weight indexes covering the MLP space were down much more than the Alerian MLP Index. Relative to the equal weight indexes, the Alerian MLP Index was helped by 1.6% performance
MLPs were down, but outperformed the broader market this week (MLP Index: -0.5%, S&P 500: -2.0%). Yield-based equities overall traded well (utilities traded up, REITs were roughly flat) helped by week-over-week declines in the interest rate on the U.S. 10-year of 14 basis points down to 2.65%. Dropping interest rates seemed to outweigh universally
The MLP Index drifted higher the first 3 days of this week, and then floated down a bit Thursday and Friday to settle up 0.5% for the week. Oil and natural gas futures were also flat-ish. Issues in the Ukraine slowed the broader U.S. stock market to start the week, but the S&P 500 rallied in each of the subsequent days to close up 1.0% for the week.
Returns for the Alerian MLP Index were slightly lower than flat for the week at -0.2%, but well below those of the S&P 500 at +1.3%. Sharply lower commodity prices and some weak 4Q13 results by a few prominent MLPs (MWE, LINE, BBEP, XTEX, VNR and CMLP within the index) helped drag down the MLP index, while the S&P 500 hit another all-time high,