Today saw a conflicting swirl of data that ultimately brought markets down. April retail results came in lower than expected as many blamed the cooler than average temperatures for warding off shoppers and consumers willing to open their wallets. The disappointing results came from Target, Costco, and Macy’s among several other names. General Motors, though meeting expectations, provided bad guidance which sent their shares tumbling. At the same time, jobless claims came in rather low, so markets were unsure of how to react at first. Eventually, things headed south as the Dow and S&P 500 posted losses of 0.5% and 0.8% respectively [see also How To Profit From Rising Gasoline Prices].
On the commodity side of things, both gold and oil were slaughtered for the session. The massive sell-off begs the question if an entry point has been reached, but only time will tell if markets agree with that sentiment. Other notable commodity performances came from natural gas, cattle, and coffee, all of which exhibited big swings for the day. In an effort to keep our readers up to date on all of the happenings in the financial world we outline two of the biggest ETF movers on the day and why these funds had such big days [see also Is Gold Still A Safe Haven?].
Today’s big winner comes from the United States Natural Gas Fund LP (UNG), which has been putting together a nice couple of trading sessions. With gains of 3.4% on the day, UNG is now up over 11% in the last two weeks. Take that with a grain of salt, however, as the fund is still down more than 37% on the year. Today’s big gains came from the weekly natural gas storage report that showed an unexpected dip in supplies, a result that has been a rarity in recent months. As such, traders bought up UNG at an alarming rate; the fund nearly doubled its average daily volume with 17.1 million shares traded [see also 25 Ways To Invest In Natural Gas].
One of the biggest ETF losers on the day was the Energy Select Sector SPDR (XLE). This fund, which tracks the U.S. energy market, dipped by nearly 1.7% on the day, as crude oil took a nosedive for the session. WTI crude futures lost more than 2.5% for the day, putting pressure on all of XLE’s underlying holdings. As crude is often used as a speculative/trading instrument, today’s weak economic data prompted a massive sell-off in the commodity which, in turn, hurt XLE. This ETF is up just over 1% on the year as the energy sector has had momentum issues for most of 2012.
XLE Intraday Chart 5/3/2012
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Disclosure: No positions at time of writing.
- General Motors