After a break last week when stocks were down, the market returned to our new normal, where the S&P 500 was up, interest rates and oil prices were lower, and utilities underperformed. With that backdrop, midstream outperformed energy stocks broadly, but finished the week negative. MLPs came through the selloff this week unscathed, notching a second consecutive positive week to open the year.
Natural gas prices were a bright spot this week on colder weather. The market seemed to key off inflation data, taking the CPI and PPI prints as further signals of a soft landing. Geopolitical activity continues to ramp up, but oil prices continue to largely shrug off the escalating activity.