U.S. equities slipped into negative territory today as investor concern over the Federal Reserve maintaining its current bond-purchasing program came to the forefront once again. As a result, the Dow Jones Industrial average snapped its win streak of 20-consecutive Tuesdays. In economic news, the U.S. trade deficit widened less than expected in April due to an uptick in U.S. exports; the figure came in at $40.3 billion, compared to the expected rise to $41.0 billion. Meanwhile, investors will be looking closely at Japan’s Prime Minister Shinzo Abe’s speech on growth strategy on Wednesday [see The Cheapest ETF for Every Investment Objective].
Global Market Overview: Dow Snaps Tuesday Win Streak, IBB Sinks
As Fed concerns heightened, all three major U.S. equity indexes slipped to close in negative territory. The Dow Jones Industrial Average ETF (DIA, B) fell 0.44% after its underlying index snapped its Tuesday winning streak. The S&P 500 ETF (SPY, A) slipped 0.48%, while the tech-heavy Nasdaq ETF (QQQ, A-) fell 0.53%.
In Europe, markets were slightly higher following upbeat Spanish jobs and U.K. construction reports. The Stoxx Europe 600 inched 0.3% higher. Meanwhile, Asian equities were mixed; Japan’s Nikkei Stock Average rallied 2.1% on a weaker yen, while China’s Shanghai Composite Index fell 1.17%.
Bond ETF Roundup
U.S. Treasuries traded lower after U.S. trade deficit data came in below expectations. Yields on 10-year notes rose 2 basis points, while 30-year bond and 5-year note yields rose 4 and 2 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded slightly lower today, settling just above $93 a barrel, ahead of weekly reports expected to show declines in U.S. crude supplies. In other energy trading, gasoline and natural gas futures were slightly higher. Meanwhile, gold traded lower on demand concerns in the world’s largest consumer, India; the nation announced today that it will extend restrictions on imports of the metal.
ETF Chart Of The Day #1: (IBB)
The Nasdaq Biotechnology ETF (IBB, A-) was one of the worst performers today, shedding 1.81% during the session. Healthcare and biotechnology shares were among today’s worst performers, forcing this ETF to tumble during the afternoon hours. IBB slid sideways for the final hour of trading, eventually settling at $174.21 a share [see Baby Boomers ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 13-week period has been the Global Titans ETFdb Portfolio, which has gained 3.02%.
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Disclosure: No positions at time of writing.
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