The S&P 500 was little changed for the week after Friday’s stock plunge triggered by worries over corporate earnings, Spain’s wobbling banking system and the U.S. fiscal cliff.
The large-cap index was up 0.4% for the week in afternoon trading Friday while the Dow rose a slight 0.2% but the Nasdaq Composite shed 1.2%. [Google Earnings Snafu Adds to Tech ETFs’ Woes]
The Dow fell about 200 points in afternoon action on the 25 th anniversary of the 1987 Black Monday crash. [Stock ETFs Battle Resistance]
“It does seem we are in this range-bound area, still up near the highs, which is good, but these earnings better start coming in better or we will be in for more pain,” Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research, told Reuters.
Despite Friday’s sell-off, bulls took some solace in the strong performance of riskier ETFs tracking U.S. homebuilder stocks and troubled European countries this week. [Builder ETFs Try Another Breakout]
In commodities, precious metal ETFs were set to finish the week in the red with silver funds pacing the decliners.
In bond ETFs, Treasuries were among the biggest losers this week with PIMCO 25+ Year Zero Coupon U.S. Treasury (ZROZ) dropping over 3%.
Next week’s economic data features reports on new home sales, durable goods orders, pending home sales, consumer sentiment and third-quarter GDP. Also, investors will get the Federal Reserve statement on Wednesday afternoon.
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.