Daily ETF Roundup: Markets Slump Despite Strong Jobs Figures

by on November 2, 2012

Markets cheered at the open to stronger than expected payroll figures, only to watch markets sell-off through out the duration of the session. Today marks just the third trading day this week, as markets were closed for two days due to Hurricane Sandy, which wreaked havoc on the east coast. The economy saw 171,000 new jobs added in October, but a jump in the labor force caused unemployment to tick up 0.1%. Unfortunately, weakness in the material and energy sectors is what dragged markets lower [see also How To Pick The Right ETF Every Time]. 

Global Market Overview: Markets Slump Despite Strong Jobs Figures

All three major indexes posted a hefty loss on the day thanks to weakness of select sectors. The S&P 500  (SPY) surrendered 0.89% while the Dow Jones  (DIA) and Nasdaq  (QQQ) lobbed off 0.99% and 1.07% respectively. This comes as a major disappointment given Thursday’s strong market rally that opened the month on a positive note. It seems that many are anxiously awaiting the results of Tuesday’s election and that markets will be stuck in limbo until then.

Bond ETF Roundup

Bond markets were relatively quiet by comparison, as most funds finished flat or nearly flat. The worst losses came from the investment grade space where  (LQD) fell by 0.2%.

Commodity ETF Roundup

It was an absolute slaughter for many major commodities, as gold  (GLD) and silver  (SLV) both faced harsh sell-offs. Gold equities fared little better, as a number of big producers like Newmont Mining  (NEM) reported weak earnings. Investors will also note that natural gas had an abysmal session as the sell-off plagued some of the most volatile commodities on the market.

ETF Chart Of The Day #1: SLV

Silver turned in one of its worst performances in recent memory, as this fund gapped lower at the open and only continued its sell-off from there. For the session as a whole, SLV lost 4.1%. With the fund back below $30, some investors may see this as a prime buying opportunity for the battered fund [see also 25 Ways To Invest In Silver].



ETF Chart Of The Day #2: VXX

This volatility fund was able to prey on today’s weak markets as the VIX surged, allowing VXX to jump 2.6%. What’s more, VXX traded about 33% higher than its normal volume showing that while some investors may still be unable to trade, others are certainly stepping in to fill the void.


ETF Fun Fact Of The Day

Despite today’s rough loss, the SPDR S&P 500 ETF (SPY) is still up more than 14% this year.

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