The summer slump continued on Wall Street, as investors weighed a slew of mixed earnings reports against strong housing data. New home sales for June were reported to have risen 8.3% to a seasonally adjusted annualized rate of 497,000; analysts were expecting a rate of 485,000. In earnings news, tech giant Apple (AAPL) easily beat Q3 earnings and revenue forecasts, while auto maker Ford (F) also exceeded analyst expectations. Construction equipment maker Caterpillar (CAT) and telecom giant AT&T (T), however, both missed Wall Street’s earnings expectations [see The Cheapest ETF for Every Investment Objective].Global Market Overview: XLE Drops As Crude Retreats, IYW Pops On Apple Earnings
Following today’s earnings and economic reports, only one major U.S. equity indexes managed to close in positive territory. The tech-heavy Nasdaq ETF (QQQ, B+) rose 0.32%, lifted by stronger-than-expected results from Apple. The Dow Jones Industrial Average ETF (DIA, A) slipped 0.17%, while the S&P 500 ETF (SPY, A) traded 0.37% lower.
In Europe, markets were broadly higher following a positive reading on Markit’s preliminary composite purchasing-manager’s index; the Stoxx Europe 600 rose 0.6%. Meanwhile, Japan’s Nikkei Stock Average slipped 0.3%, and China’s Shanghai Composite fell 0.5% after HSCB’s preliminary China PMI for July fell to an 11-month low of 47.7 (readings below 50 indicated contraction).
Bond ETF Roundup
U.S. Treasuries fell once again today after a mixed government auction. Yields on 10-year notes rose 8 basis points, while 30-year bonds and 5-year note yields rose 7 and 6 basis points, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower today, settling below $106 a barrel, as investors weighed a slight decline in crude supplies against Caterpillar’s weak earnings and a disappointing Chinese manufacturing report. In other energy trading, gasoline and natural gas futures also traded lower. Meanwhile, gold futures shed 1.1% to settle at $1,319.90 a troy ounce.
ETF Chart Of The Day #1: (XLE)
The Energy Select Sector SPDR ETF (XLE, A) was one of the worst performers today, shedding 1.11% during the session. As crude oil and energy stocks retreated, this ETF took a steep hit during the morning hours. XLE slid lower throughout the day, eventually settling at $82.66 a share [see Energy Bull ETFdb Portfolio].
ETF Chart Of The Day #2: (IYW)
The U.S. Technology ETF (IYM, A) was one of the best performers today, gaining 0.86% during the session. After Apple (AAPL) beat earnings and revenue forecasts, this ETF gapped significantly higher at the open. IYW eventually settled at $76.61 a share [see High Tech ETFdb Portfolio].
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 2.70%.
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Disclosure: No positions at time of writing.