Yesterday’s brief euphoria quickly turned sour today, after fiscal cliff negations took a turn for the worse. House Speak John Boehner stated that the House would approve legislation on Thursday to keep the income tax rate the same for those earning less than $1 million a year, and would maintain the current estate tax at 35%. President Obama has already stated that he would veto this “Plan B” deal, leaving many investors wondering if the two sides will be able to come to a viable solution and compromise [see also 101 High Yielding ETFs For Every Dividend Investor].Global Market Overview: Stocks Decline As Budget Talks Turn Sour
All three major U.S. equity indexes slipped into negative territory today on sour budget talks. The S&P 500 (SPY) came at the bottom of the barrel, shedding 0.76% during the session. The Nasdaq (QQQ) slipped 0.33%, while the Dow Jones Industrial Average (DIA) fell 0.74%. In Europe, markets were mostly higher after strong German data and an upgrade of Greek debt was reported. Asian equities also closed higher; Japan’s Nikkei Stock Average rallied 2.4%, while Australia’s S&P ASX 200 inched 0.5% higher.
Bond ETF Roundup
U.S. Treasury prices finally rose today as investors weighed the latest developments in Washington. Yields on 10-year notes and 30-year bonds slipped 2 basis points, while 5-year note yields remained unchanged.
Commodity ETF Roundup
Commodities were mostly lower today, with precious metals, namely silver, tumbling on budget talks. Energy futures, however, rallied once again with the exception of natural gas, which fell over 2% today [see also 13 High-Yielding Commodities For 2013].ETF Chart Of The Day #1: JJU
The Barclays iPath Dow Jones-UBS Aluminum Total Return Sub-Index ETN (JJU, A-) was one of the worst performers today, shedding an abysmal 2.86% during the session. After aluminum-giant Alcoa was placed on review for a downgrade by Moody’s, this thinly-traded ETN took a steep tumble as trading volumes peaked following the report. JJU settled at $24.12 a share [see also Mining Boom ETFdb Portfolio].
The Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX, B+) was one of the best performers today, gaining a whopping 5.83% during the session. After tumbling yesterday, the CBOE Volatility Index (VIX) made a reversal, popping above 17. VXX rallied throughout the majority of the day, eventually settling at $29.79 a share [see also Low Volatility Portfolio].
ETF Fun Fact Of The Day
The best performing retirement strategy from the trailing 13-week period is our Cheapskate Portfolio; this strategy is up an impressive 4.69%.
Disclosure: No positions at time of writing.