Overview
Commodity strength provided a supportive backdrop for resource equities on January 13, 2026. West Texas Intermediate crude oil rose to $59.71 per barrel, Brent crude climbed to $64.26 per barrel, copper advanced to $5.96 per pound, and gold jumped to $4,614 per troy ounce. Natural gas softened to $3.35 per million British thermal units. These moves coincided with broad market optimism, record highs for the S&P 500, and analyst projections for meaningful earnings growth in 2026.
ETF and Sector Breadth
The sector-level picture showed strong participation. The Materials Select Sector ETF exhibited rare breadth, with all constituent stocks trading above their 50-day moving averages — a technical configuration historically associated with outsized follow-through. The ETF traded near $48.40, posted a year-to-date return in the mid-single digits, and has seen elevated trading volume with assets under management approaching $6 billion.
Energy exposure consolidated after a short pullback, trading in the mid-$40s and maintaining a one-year positive return. Valuation metrics for energy remained relatively attractive on a forward P/E basis, and recent volume spikes signaled institutional accumulation despite extended basing patterns.
Notable Individual Moves
- Freeport‑McMoRan (FCX): Copper strength propelled the stock to new 12‑month highs, with elevated volume and strong analyst sentiment reflecting demand tied to electrification and data-center buildouts.
- Newmont Corporation (NEM): A sizable advance in the gold price lifted the miner, backed by positive fundamentals from central-bank buying and tighter physical supply dynamics.
- Exxon Mobil (XOM) and Chevron (CVX): The majors remained relatively stable — trading with heavy volume, offering dividend yields that attract income-oriented investors, and drawing favorable analyst targets tied to continued production and capital discipline.
- Sherwin‑Williams (SHW): A standout in chemicals and coatings, the company benefited from improving construction indicators and pricing power, reflected in a premium P/E multiple versus peers.
Flows, Sentiment and Positioning
Investor flows and social sentiment highlighted a renewed focus on commodities as a durable theme, with rotation into metals and energy names supported by expectations for lower interest rates and ongoing industrial demand. Institutional positioning emphasized balance‑sheet discipline among producers and measured capital allocation from shale operators, while materials exposure captured upside from infrastructure spending and AI-driven metals demand.
Risk and Catalysts
Geopolitical developments and potential supply changes remain key near‑term catalysts. Reports of resumed Venezuelan exports and tensions in key producing regions add a supply‑side variable that can both support prices and introduce volatility. Conversely, moderating natural gas prices and any unexpected demand weakness would temper gains in select subsegments.
Outlook
With broad technical confirmation in materials and consolidation in energy amid attractive relative valuations, positioning favors continued outperformance where commodity tailwinds intersect with positive earnings revisions. Investors looking for exposure may focus on high‑quality commodity proxies, dividend‑paying integrated producers, and select materials names benefiting from secular demand drivers.
Note: This report is for informational purposes and not investment advice. Investors should perform their own due diligence or consult a financial advisor before making investment decisions.
