Earnings euphoria fizzled today as heavy-hitter Google disappointed investors with their premature earnings announcement. Although the tech-giant was scheduled to report after today’s closing bell, it came out early to post earnings of $9.03 a share and a 20% decline in profit, well bellow the expected $10.65 a share forecast. Immediately following the announcement, Google’s stock tumbled, falling as much as 10%. In economic news, weekly jobless claims rebounded to a seasonally adjusted 388,000, hitting the highest level in four months. Meanwhile, the Conference Board’s index of leading indicators ticked higher while Philly Fed manufacturing data from the Mid-Atlantic region also came in significantly better-than-expected [see also How To Pick The Right ETF Every Time].
Weighed down by Google’s disappointing earnings, tech-heavy Nasdaq (QQQ) came in at the bottom of the barrel, shedding 1.16%. The Dow Jones Industrial Average (DIA) and S&P 500 (SPY) also ended in negative territory, dropping 0.05% and 0.26% respectively. In Europe, markets closed higher after an auction of Spanish bonds exceeded demand expectations. Asian equities rallied after China reported that its GDP expanded 7.4% in the third quarter, in line with expectations. Chinese industrial output and retail sales also increased in September. China’s Shanghai composite rose 1.2%, while Japan’s Nikkei Stock Average jumped 2%.
Bond ETF Roundup
U.S. Treasuries took their cue from fundamentals today. Yields hit a technical level earlier in the day that triggered buying out of Asia. Buying, however, let up by the end of the U.S. session, allowed yields to rise slightly higher.
Commodity ETF Roundup
Grains pushed higher once again today, as prices for wheat, corn, and soybeans advanced after adverse weather hit major producers Brazil and Argentina. Other commodities, however, were broadly lower on mixed economic news.
ETF Chart Of The Day #1: FDN
The First Trust DJ Internet Index Fund (FDN) was one of the worst performers today, shedding 1.57% during the session. FDN was on the rise during early morning hours, but as it’s top holding Google reported less than stellar earnings, the fund took a nosedive. FDN eventually settled above its low of $36.86 a share [see also TDIV: Where Technology Meets Dividends].
ETF Chart Of The Day #2: UGAZ
The VelocityShares 3x Long Natural Gas ETN (UGAZ) was one of the best performers today, gaining 7.24% during the session. Although natural gas storage data came in better than expected today, natural gas futures pushed higher. Alongside the commodity’s rally, this leveraged ETN surged higher throughout the day. UGAZ eventually settled just below its high of $42.58 a share [see also Invest Like George Soros With This Commodity Stock].
ETF Fun Fact Of The Day
There are only six ETFs that currently offer exposure to insurance giant Travelers Companies, Inc (TRV). It receives the highest weightings in the KBW Property & Casualty Insurance Portfolio (KBWP) and the KBW Insurance Portfolio (KBWI) at 9.48% and 7.70%, respectively.
Follow me on Twitter @DPylypczak
Disclosure: No positions at time of writing.