Materials Sector Weekly Round-up: Materion tops list on strong Q4; West Fraser Timber drops to bottom

The S&P materials index was down -0.95% this week, and the Materials Select Sector SPDR ETF (XLB) -0.89%. News this week was dominated by economic data on inflation from the latest U.S. consumer price index report and what it meant for the future of the Federal Reserve's path on rate hikes.

The report led to a strong dollar, driving down gold futures (XAUUSD:CUR) to their lowest price in more than five weeks. Front-month Comex gold (XAUUSD:CUR) for February delivery closed -1.1% to $1,834.20, the lowest most-active contract finish since January 5, while Comex February silver (XAGUSD:CUR) settled -1.3% to $21.546/oz.

Aluminum prices in London also fell to a fresh five-week low during the week as the rapid buildup of inventories in exchange warehouses continues. London copper prices (HG1:COM)also dipped 0.4% to $8,989.5 per ton, touching a five-week low on Thursday.

Here are this week's top gainers among basic material stocks ($2B market cap or more):

• Materion (MTRN) +30.53%; Shares surged on better-than-expected Q4 earnings and record value-added sales.
• Avient (AVNT) +12.83%; The material solutions company beat Q4 estimates and posted an upbeat 2023 outlook.
• Scotts Miracle-Gro (SMG) +11.98%; Shares got a boost after an upgrade by Wells Fargo Securities citing the potential to boost its profit margin by keeping expenses in check.
• Ecolab (ECL) +10.36%; Shares reached a three-month high this week after quarterly earnings that were better than Wall Street’s average estimate.
• Reliance Steel & Aluminum (RS) +8.53%; The company's Q4 results beat top-line expectations and issued a robust outlook for the next quarter.

Take a look at the top losers among basic material stocks:

• West Fraser Timber (WFG) -9.47%; Inventory write-downs weighed on the wood products company's margins, leading to lower-than-expected earnings for Q4.
• Agnico Eagle Mines (AEM) -9.12%; Shares plunged to a three-month low after weaker than expected production guidance and higher costs at the end of its Q4.
• Ufp Industries (UFPI) -8.81%
• Hecla Mining Company (HL) -8.50%; The stock was hit after reporting Q4 GAAP earnings and revenues that missed expectations while releasing disappointing guidance for FY 2023 gold production.
• CF Industries (CF) -7.78%; The company's Q4 results missed top-line expectations.

Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).