Earnings Split Materials as PPG Gains and Smurfit WestRock Slides

The Materials Select Sector SPDR Fund (XLB), an exchange-traded fund tracking the Materials sector, ended +0.2% on Wednesday, October 28. Breadth was evenly split across the sector, with 50.0% of its S&P 500 member companies finishing higher. The market-cap weighted sector closed +0.2%, while an equal-weighted measure stood at -0.1%. That gap shows that larger companies carried the fund, offsetting drag from smaller constituents. It occurred within a sector where only 34.1% of graded holdings carry an A or B quality grade. Company earnings drove the divergence: PPG Industries Inc ended +4.5% after raising its full-year earnings guidance, while Smurfit WestRock plc finished -5.1% after cutting its full-year operational outlook.

The divergence reflected contrasting operational environments across materials sub-industries. PPG Industries Inc reported record third-quarter earnings per share and organic sales growth, enabling leadership to lift the midpoint of its full-year earnings forecast. Elsewhere in chemicals, Dow launched DOWSIL™ IE-5619 Emulsion. Smurfit WestRock plc reported lower EBITDA and earnings per share alongside elevated costs and weaker volumes, while providing approximately $4.7 billion of 2026 EBITDA guidance.

Broader market conditions offered little momentum either way, leaving materials as one of the quieter corners of the session. XLB closed at $51.87, extending a recent run that has brought the fund +5.6% over the past month. That recent lift contrasts with its longer path, as the fund is -41.8% over the past twelve months. Over the past six months, the fund is +0.8%, while its move over the past 100 sessions stands at +3.8%.

Holding $7.8 billion in net assets with an expense ratio of 0.08%, the fund reflects the combined effect of these company earnings rather than any single corporate report. That structure allowed the advance in larger holdings to offset declines across the rest of the sector.