Daily ETF Roundup: VXX Sinks, XLF Soars

by on April 14, 2010 | ETFs Mentioned:

Equity markets soared on Wednesday as strong earnings reports from Intel and J.P. Morgan sent shares higher across the board. The Dow surged ahead by over 100 points while the S&P 500 finished the day above the 1,200 mark. In addition to strong performance in equity markets, oil finished the day higher by close to 3%, ending the day just below $86/bbl. This sharp increase came after a stellar quarter was reported by Intel in which the chip giant said that it had produced a profit of 43 cents a share compared to 11 cents a share from the same period one year ago. International prospects boosted the markets as well; Singapore reported an astounding 32% GDP growth from the prior quarter, a record for the island nation. This news helped to alleviate concerns over the depth of the recovery and its affect on other developed nations. For more about Singapore’s GDP numbers, see Singapore ETF (EWS) Surges Ahead On Mind-Boggling GDP Growth.

The ETFdb 60 Index, a benchmark measuring the performance of asset classes available through ETFs, climbed 9.04 points, or 0.8%, to finish at a new 2010 high of 1,076.73. The ETFdb 60 Index is now up 4.1% on the year.

One of the big losers on the day was iPath S&P 500 VIX Short-Term Futures ETN (VXX) which sank 2.8% in today’s trading. With earnings season off to a hot start, more and more bears are becoming convinced that there may be some staying power in the recovery. Investors are growing increasingly confident in the strength of the market recovery which has also helped to put pressure on VXX. VXX has been hammered down by the market recovery in 2010; it is down more than 43% since January 1st.

One of the biggest gainers in Wednesday trading was Financials Select Sector SPDR (XLF) which was up 2.6%. This came after J.P. Morgan reported impressive results and saw its shares rise by over 4% in Wednesday trading. The bank reported profits of over 74 cents a share compared with profits of just 41 cents a year ago. In addition, upper-management gave an optimistic outlook that helped to send other financial shares and even the broad market higher. “The chance of a double dip is rapidly going away,” said Jamie Dimon, CEO of JP Morgan. “This could be the makings of a good recovery.”

Disclosure: No positions at time of writing.