Investors were in for another lackluster day of trading, as markets closed narrowly mixed after drifting near the flat line throughout the session. A string of mixed economic data and earnings reports had investors on edge, resulting in trading volumes and market activity to remain at their low summer slump levels. The New York Federal Reserve’s Empire State index of manufacturing fell unexpectedly into negative territory for the month of August, marking the first drop in orders since last October. In the corporate arena, industrial giant Deere missed analysts’ estimates in its second quarter earnings report, citing weakness in demand and manufacturing inefficiencies. And since no major headlines have been able to put momentum back into the markets, equities will likely continue to drift sideways [see also How To Pick The Right ETF Every Time].
Global Market Overview: Stocks Finish Flat On Mixed Data
The S&P 500 (SPY) and Nasdaq (QQQ)
managed to close in positive territory, posting modest gains on the day. The Dow Jones Industrial Average (DIA) however, finished slightly lower. European equities also closed mixed after the U.K. reported a decline in unemployment and the Bank of England announced that it will not take any new immediate stimulus measures. Asian markets ended broadly lower, led by the Shanghai Composite’s 1.1% decline.
Bond ETF Roundup
Treasury yields rose today to their highest level since May, as investors continue to shift away from the safe haven after hearing several better-than-expected economic reports over the last few weeks.
Commodity ETF Roundup
While gold and silver futures inched higher today, copper fell on a stronger U.S. dollar and today’s disappointing Empire State manufacturing report. Following a report of a steep drop in U.S. oil stockpiles and rising tensions in the Middle East, oil futures surged to their highest level in three months, giving USO a 0.77% gain on the day. Meanwhile, natural gas continued its slide as temperatures across the nation start their decline.
ETF Chart Of The Day #1: TMV
The Direxion Daily 20 Year Plus Treasury Bear 3x Shares (TMV) was one of the best performers of the day, gaining a whopping 4.13% during the session. As 30-year Treasury yields rose to their highest level since mid-May, this leveraged bear ETF gapped significantly higher at the open, only to inch higher throughout the day. TMV settled just below its high of $57.73 a share [see our King Dollar ETFdb Portfolio].
ETF Chart Of The Day #2: DGAZ
The VelocityShares 3x Inverse Natural Gas ETN (DGAZ) surged 6.27% during today’s session. While natural gas futures tumbled today, this leveraged inverse ETF gapped significantly higher at the open, only to slide sideways throughout the day. DGAZ settled just shy of its high of $29.98 a share [see also 25 Ways To Invest In Natural Gas].
ETF Fun Fact Of The Day The ETF with the largest allocation to Apple (AAPL) is iShares’ Dow Jones U.S. Technology Index Fund (IYW), with its allocation of 23.11% of total assets to the stock.
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Disclosure: No positions at time of writing.
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