U.S. equities took a step back from the recent euphoric highs for a slow day on the market following less than amazing earnings reports and economic data. Friday’s weaker than expected jobs data took it’s toll on investor stamina and have lead to heightened hopes that the Federal Reserve may reconsider withdrawing stimulus this fall. With earnings season drawing to a close, the remaining companies left to report will have to pull in some earth shaking results to drag investors out of their current underwhelmed attitude [see also The Complete Visual History Of SPY].
Global Market Overview: Markets Come Down, PBW and IYZ Rise
Following the slow day of trading, only one major U.S. equity index managed to close in positive territory. The tech-heavy Nasdaq ETF (QQQ, B+) rose 0.08% briefly hitting hitting a fresh new 13 year high earlier today. The Dow Jones Industrial Average ETF (DIA, A) fell 0.26%, while the S&P 500 ETF (SPY, A) finished 0.15% below.
In Europe, markets started the day strong after better than expected growth data came in for the UK; the Stoxx Europe 600 rose 0.2%. Meanwhile, Japan’s Nikkei Stock Average fell 1.4% once again due to a stronger yen, and China’s Shanghai Composite gained 1% as investors anticipate a strong economic update for July at the end of the week.
Bond ETF Roundup
U.S. Treasuries continue to rise following the Federal Reserve’s policy-setting committee statement last week and after a strong service sector actively report in July. Yields on baseline 10-year notes rose 4 basis points, while 30-year bonds and 5-year note yields rose 4.5 and 3 basis point, respectively [see also Seven Simple & Cheap ETF Model Portfolios].
Crude oil futures traded lower today, settling above $106 a barrel with conflicting feelings in the Middle East. Terrorist threats on US embassies in the region have led to the mass evacuation and investor fear, but a number of strong economic reports are set to come out on the region. Natural gas and gasoline futures also slipped this Monday. Meanwhile, gold futures fell 0.63% to settle at $1,302.40 a troy ounce.
ETF Chart Of The Day #1: (PBW)
The WilderHill Clean Energy ETF (PBW, A-) was one of the best performers today, gaining 1.88% during the session. Top holding, Canadian Solar (CSIQ), agreed to selling five projects today, valued at $279 million and rose 12% before the Monday close [see Alternative Energy ETFd Battle For Inflows: PBW vs. TAN].
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ETF Chart Of The Day #2: (IYZ)
The iShares U.S. Telecommunications ETF (IYZ, B+) also posted a strong performance, gaining 1.14% during the session, riding on the exceptional returns the fund saw in July [see High Tech ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy year-to-date has been the Global Titans ETFdb Portfolio, which has gained 8.95%.
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Disclosure: No positions at time of writing.
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