Daily ETF Roundup: First Week Of Earnings Ends In Choppy Trading

by on October 12, 2012 | ETFs Mentioned:

Investors were in for another choppy trading session today as ongoing global growth worries overshadowed some better-than-expected earnings and economic reports. In macro news, the U.S. consumer sentiment jumped to its highest level in five years, bucking many analysts predictions. Financial bellwethers J.P. Morgan Chase and Wells Fargo also surprised investors, as both companies reported beat earnings expectations. Despite the uptick, both stocks were hit hard as investors brought more attention to Wells Fargo missing revenue expectations and its troubling net interest margins. Earnings jitters will likely continue in the coming weeks, as investors brace themselves for mixed reports and choppy trading [see Free Seven Simple & Cheap All-ETF Portfolios]. 

Global Market Overview: First Week Of Earnings Ends In Choppy Trading 

All three major indexes logged their biggest weekly drop since June, but only one index managed to eke out a small gain on the day. The Dow Jones Industrial Average (DIA) tacked on a meager 0.02%, while Nasdaq (QQQ) and the S&P 500 (SPY) slid 0.17% and 0.30% respectively. In Europe, markets were mostly lower after the head of the Organization of Economic Cooperation and Development stated that Spain’s delay in requesting for bailout funds erodes the credibility of the ECB’s plan. Meanwhile, Asian markets were mixed as investors wait for China’s trade data that is slated to be released over the weekend: Japan’s Nikkei Stock Average fell 0.2% and China’s Shanghai Composite tacked on 0.1%.

Bond ETF Roundup 

U.S. Treasury prices ticked higher once again today, adding to their weekly gain. Weighing heavily on the safe haven was the increasing wariness about the Euro Zone as well as the Federal Reserve’s continued bond buying.

Commodity ETF Roundup

Commodities were mostly lower across the board today, with agricultural products taking some of the biggest hits. Wheat, corn, and soybeans all fell today after weather reports indicated that weekend rain will bring some much-needed moisture to fields in part of the growing regions. Crude oil also ticked lower after the International Energy Agency predicted a slower pace of demand growth in the coming years [see also For Day Traders: The Most Liquid ETF For Every Commodity].

ETF Chart Of The Day #1: XLF

The State Street Financial Select Sector SPDR ETF (XLF) was one of the worst performers today, shedding 1.37% during the session. Despite both bellwethers J.P. Morgan and Wells Fargo beating their earnings expectations, financial shares slid lower as investor concerns over narrow profit margins came to a head. In response, this ETF gapped lower at the open, only to pop up slightly during early morning hours then drop off sharply. XLF eventually settled above its low of $15.76 a share [see also Financials Free ETFdb Portfolio].

ETF Chart Of The Day #2: XME

The State Street SPDR S&P Metals & Mining ETF (XME) also had a rough trading session, shedding 2.28% on the day. Gold, silver, and copper prices were all lower today, forcing this ETF to make a steep drop during the afternoon trading hours. XME slid sideways for the rest of the day, eventually settling at $44.14 a share [see also Four Little Known Factors Driving The Price Of Copper].

ETF Fun Fact Of The Day

The best performing fund in the Energy Equities ETFdb Category year-to-date is the Dynamic Energy E&P ETF (PXE), which has gained 18.79%. The worst performing is the Market Vectors Coal ETF (KOL), which has lost 22.29%

Follow me on Twitter @DPylypczak

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.