It was a choppy trading session on Wall Street today as markets took a nose dive right before closing, with the Dow Jones shedding 208.96 points, though major indexes still managed to log in monthly gains. In economic news, the Commerce Department reported that consumer spending was down 0.2% in April while analysts expected a rise of 0.1%. A separate report released today showed consumer sentiment reaching its highest point in almost six years after rising from 76.4 in April to 84.5 this May [see The Cheapest ETF for Every Investment Objective].
Global Market Overview: XLF Rallies, VNQ Sinks Alongside REITs
After a choppy trading session, all three major U.S. indexes fell to close in negative territory. The S&P 500 ETF (SPY, A) tumbled 1.44%, losing the most ground in the last hour of trading. The Dow Jones Industrial Average ETF (DIA, B) fell 1.31%, while the tech-heavy Nasdaq ETF (QQQ, A-) dropped 1.01%.
In Europe, markets were broadly lower after reports came out showing eurozone unemployment was up to a colossal 12.2% in April; the Stoxx Europe 600 closed down 0.9%. Meanwhile, Asian markets were mixed, with Japan’s Nikkei Stock Average rallying 1.37% and China’s Shanghai Composite Index slipping 0.74%.
Bond ETF Roundup
Treasury prices fell on Friday, logging the worst month in nearly three years. Yields on 10-year notes rose slightly, up only 3 basis points, while 30-year bond yields ended up 1.5 basis points and 5-year note yields were also up slightly at 1.035% [see also Seven Simple & Cheap ETF Model Portfolios].
Both gold and oil futures traded lower, with metals taking a hit after today’s upbeat consumer confidence report and oil suffering after OPECs decision to keep its oil production target unchanged. Meanwhile, wheat futures extended their losses Friday as Asian buyers continued to stay clear of American wheat after an investigation was launched on an Oregon farm caught using an unapproved genetically modified strain.
ETF Chart Of The Day #1: (XLP)
The Consumer Staples Select Sector SPDR ETF (XLP, A+) saw huge loses this morning following a less than ideal consumer spending report. XLP inched lower throughout the day, eventually closing 1.86% lower [see 8% Yield ETFdb Portfolio].
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ETF Chart Of The Day #2: (VGK)
The FTSE Europe ETF (VNQ, A+) was one of the worst performers today, following a disappointing eurozone unemployment report. VGK gapped significantly lower at the open, but slid sideways for the remainder of the day. The fund eventually settled at $51.37 a share [see Kitchen Sink ETFdb Portfolio].
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ETF Fun Fact Of The Day
The best-performing regional strategy over the trailing 1-year period has been the Euro Free Europe ETFdb Portfolio, which has gained 27.25%.
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Disclosure: No positions at time of writing.
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